Are Endless Summer Sweets franchisees required to submit copies of contracts to the franchisor?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Notice of Default and Opportunity to Cure. Landlord shall provide Franchisor with copies of any written notice of default ("Default") given to Tenant under the Lease, and Landlord grants to Franchisor the option (but not the obligation) to cure any Default under the Lease (should Tenant fail to do so) within ten (10) days after the expiration of the period in which Tenant may cure the Default.
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- Termination of Lease. Proprietor shall copy Franchisor on any notice of termination of the Lease. If Landlord terminates the Lease for Tenant's Default, Franchisor shall have the option to enter into a new Lease with Landlord on the same terms and conditions as the terminated Lease. To exercise this option, Franchisor must notify Landlord within fifteen (15) days after Franchisor receives notice of the termination of the Lease.
Source: Item 23 — RECEIPTS (FDD pages 39–125)
What This Means (2024 FDD)
According to the 2024 Endless Summer Sweets FDD, if a franchisee leases their location, the landlord is required to provide Endless Summer Sweets with copies of any written notice of default given to the franchisee under the lease. The landlord also must copy Endless Summer Sweets on any notice of termination of the lease.
This means that Endless Summer Sweets maintains some oversight regarding the franchisee's lease agreement. Specifically, Endless Summer Sweets is alerted to any potential issues (default notices) or the termination of the lease, giving them an opportunity to intervene or take over the lease if necessary.
This arrangement protects Endless Summer Sweets by ensuring they are aware of the status of the franchisee's location and allows them to potentially maintain the location for continued operation under the Endless Summer Sweets brand. It also places a responsibility on the landlord to communicate directly with the franchisor, adding a layer of communication beyond just the franchisee.