What is the Floyds 99 Franchisor's right to cure any defaults by the Franchisee under such lease?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
The lease for the Franchised Location shall contain provisions set forth in detail in the Operations Manual (defined in Section 8.1 below), which may include the following: (1) providing for an initial term, or an initial term together with any renewal terms (for which rent must be specified in the lease) of at least 10 years; (2) expressing the landlord's consent to the Franchisee's use of the Marks and all required signage for the Barbershop; (3) giving the Franchisor the right to enter the premises and make any modification necessary to protect the Marks and the Licensed Methods; (4) allowing the Franchisor, or its designee, to have the option to assume the lease and the right following such assumption to assign the lease or sublet the leased premises to another FLOYD'S 99 franchisee for all or any part of the lease term without further landlord consent if the Franchisee defaults under the lease or this Agreement or if this Agreement terminates or expires; (5) requiring the landlord to give the Franchisor written notice of any defaults by the Franchisee under such lease and the right to cure any such defaults; and (6) the lease shall also contain restrictive use clauses which are acceptable to the Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, the franchisor has the right to receive written notice from the landlord of any defaults by the franchisee under the lease for the Franchised Location. Furthermore, the franchisor has the right to cure any such defaults. This provision is intended to be included in the lease agreement for the Franchised Location.
This clause is significant for a prospective franchisee because it provides Floyds 99 with an opportunity to step in and resolve any lease-related issues, potentially preventing eviction or termination of the lease. This can protect the franchisee's business and investment in the event of a dispute with the landlord or a financial setback that makes it difficult to meet lease obligations.
Including such a clause in the lease is a common practice in franchising, as it allows the franchisor to maintain control over the location and protect the brand's reputation. By having the right to cure defaults, Floyds 99 can ensure that the location remains operational and that the franchisee continues to adhere to the franchise agreement. The franchisee should ensure that this clause is present in the lease agreement to protect their interests and maintain a good relationship with both the franchisor and the landlord.