What happens if a Marble Slab Creamery franchisee defaults under the lease?
Marble_Slab_Creamery Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall have the right (but not the obligation) to cure any default claimed by Landlord in any such notice.
Landlord shall not take any action with respect to such default, including, without limitation, any action in order to terminate, rescind or void the Lease or to withhold any rental thereunder, for a period of 30 days after receipt of such written notice by Franchisor with respect to any such default.
Representations.
Landlord and Franchisee each hereby certify, represent and warrant that as of the Effective Date there are no known defaults (or events which with the giving of notice or the passage of time or both could give rise to a default) on the part of the other party under the Lease, that the Lease is a complete statement of the agreement of the parties thereto with respect to the leasing of the Property, and there are no other agreements between Landlord and Franchisee, written or oral, that the Lease is in full force and effect, that all conditions to the effectiveness or continuing effectiveness thereof required to be satisfied as of the date hereof have been satisfied, and that this Agreement satisfies any condition or requirement in the Lease with respect to the provision of any consents by Landlord (and any lender or lienholder with an interest in the Land) to an assignment or transfer of the Lease.
Further Representations.
Within ten (10) days after Franchisor's written request, Landlord hereby agrees to deliver to Franchisor its designee an estoppel certificate executed by Landlord, certifying (if such is the case) that the Lease is in full force and effect, and that there are no defenses or offsets outstanding under the Lease or stating any claim by Landlord and such other information as Franchisor shall reasonably request.
Source: Item 23 — RECEIPT (FDD pages 101–346)
What This Means (2025 FDD)
According to the 2025 Marble Slab Creamery FDD, if a franchisee defaults on their lease, the franchisor has the right, but not the obligation, to cure the default. The landlord is required to provide written notice to the franchisor of any default claimed under the lease.
The landlord cannot take any action to terminate or void the lease, or withhold rent, for 30 days after the franchisor receives written notice of the default. This 30-day period allows Marble Slab Creamery to assess the situation and decide whether to cure the default to protect their interest in the location.
Additionally, the landlord and franchisee must certify that there are no known defaults under the lease as of the effective date of the agreement. The landlord also agrees to provide an estoppel certificate to Marble Slab Creamery upon request, confirming the lease is in full force and effect and detailing any claims or offsets. All notices related to the lease default must be delivered to the franchisor as specified in the agreement.