Is Golden Krust Caribbean Restaurant obligated to cure a tenant's default under the lease?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
-
- Right to Cure. If Tenant is in default under the Lease, Franchisor may (but shall be under no obligation to) within the cure period set forth in the Lease, cure such default and take immediate occupancy of the Premises without Landlord consent, except Franchisor shall cure any default before occupancy. Franchisor may at any time after taking occupancy, re-let the Premises to another franchisee with Landlord's written approval of the new tenant, which consent shall not be unreasonably withheld or delayed.
Source: Item 23 — RECEIPT (FDD pages 35–153)
What This Means (2024 FDD)
According to the 2024 Golden Krust Caribbean Restaurant Franchise Disclosure Document, Golden Krust Caribbean Restaurant is not obligated to cure a tenant's default under the lease. However, Golden Krust Caribbean Restaurant has the right to do so.
Specifically, if a Golden Krust Caribbean Restaurant tenant is in default under the lease, Golden Krust Caribbean Restaurant may, within the cure period outlined in the lease, choose to cure the default. If Golden Krust Caribbean Restaurant cures the default, it can then take immediate occupancy of the premises without needing the landlord's consent. However, Golden Krust Caribbean Restaurant must cure any default before taking occupancy.
Furthermore, after taking occupancy, Golden Krust Caribbean Restaurant has the option to re-let the premises to another franchisee, but this requires the landlord's written approval of the new tenant, which cannot be unreasonably withheld or delayed. This arrangement is detailed in a rider to the lease agreement involving Golden Krust Caribbean Restaurant, the landlord, and the tenant, designed to protect Golden Krust Caribbean Restaurant's interests under the Franchise Agreement.