In Re: J.L.E.T. ENTERPRISES, LLC

United States Bankruptcy Court, M.D. Florida·Decided August 28, 2026·No. 8:26-bk-00405·Unknown

Opinion

ORDERED. Dated: August 28, 2026

LNBEL a P Lus/ . Ravera IT Muted States Bankruptcy Judge UNITED STATES BANKRUPTCY COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION www.flmb.uscourts.gov In Re: Case No. 8:26-bk-00405-LER J.L.E.T. ENTERPRISES, LLC, Chapter 11 Debtor. / MEMORANDUM OPINION AND ORDER GRANTING DEBTOR J.L.E.T. ENTERPRISES, LLC’S MOTION TO ASSUME UNEXPIRED LEASE OF NONRESIDENTIAL REAL PROPERTY ON A FINAL OR, ALTERNATIVELY, INTERIM AND FINAL BASIS Before the Court is Debtor J.L.E.T. Enterprises, LLC’s Motion to Assume Unexpired Lease of Nonresidential Real Property on a Final or, Alternatively, Interim and Final Basis (“Motion to Assume’).! J.L.E.T. Enterprises, LLC (“Debtor”) seeks approval under § 365 of the Bankruptcy Code? to assume its lease (“Lease”) with 98 FLRPT, LLC (the “Lessor’) for the use and possession

1 Doc. No. 61. 211U.8.C. § 101 - 1532 (the “Bankruptcy Code’ or the “Code”). Unless otherwise indicated, all statutory references are to the Bankruptcy Code.

of the premises located in The Shoppes at UTC, a shopping center in University Park, Florida (the “Leased Premises”).3

The Lessor objects to the Debtor assuming the Lease.4 It argues the Lease requires the Debtor to operate a “Three Dog Bakery” franchise.5 And the Debtor is now operating under the name “Lucy’s Dog Bakery & Spa.”6 Thus, the Lessor argues, the Debtor is unable to cure all nonmonetary defaults as

required by § 365(b)(1)(A).7 The Court held a hearing on the Motion to Assume on August 5, 2026.8 At the conclusion of the hearing, the Court directed the Debtor and the Lessor to file any supplemental argument or caselaw by August 7, 2026, following

which the Court would consider the matter.9 For the following reasons, the Court concludes that the Debtor can cure all material defaults on assumption and therefore meets the requirements of § 365 to assume the Lease. These are the Court’s findings of fact and

3 Doc. No. 61. 4 See generally Doc. No. 68. 5 Id. 6 See Declaration of Mark Chait in Support of Objection to Debtor’s Motion to Assume Unexpired Lease ¶ 2 (Doc. No. 96-1). 7 See Doc. No. 68, at 3-4 (arguing the Debtor “cannot satisfy the prerequisites of assumption” because “the Debtor is unable to comply with the Lease’s use covenant requiring the Debtor to operate a franchise”). 8 Doc. No. 95. 9 On August 7, 2026, the Debtor filed the Debtor J.L.E.T. Enterprises, LLC’s Supplement to Motion to Assume Unexpired Lease of Nonresidential Real Property on a Final or, Alternatively, Interim and Final Basis (Doc. No. 97). On the same date, the Lessor filed 93 FLRPT, LLC’s Supplemental Memorandum of Law in Support of Objection to Debtor’s Motion to Assume Unexpired Lease (Doc. No. 96). conclusions of law under Federal Rule of Bankruptcy Procedure 7052, made applicable to this contested matter by Federal Rules of Bankruptcy

Procedure 4001 and 9014. I. Background The Debtor is a Florida limited liability company specializing in “the sale of premium pet food, treats, and accessories, while offering professional pet

grooming services.”10 Prior to bankruptcy, the Debtor operated at two locations under the trade name “Three Dog Bakery” pursuant to its franchise agreement (the “Franchise Agreement”)11 with Three Dog Bakery, LLC (the “Franchisor”).12

The Debtor and the Lessor executed the Lease on February 8, 2017.13 The Lease grants the Debtor use of the Leased Premises for a term of five years with an option for a five-year extension.14 In 2022, the Debtor exercised its option to extend the Lease, which now expires on May 31, 2027.15 The Lessor

“will not, under any circumstances, renew or extend the Debtor’s lease beyond its current term.”16

10 Case Management Summary, (Doc. No. 13 ¶ 1). 11 Franchise Agreement (Doc. No. 34-1). 12 Id. ¶ 2. 13 Lease (Doc. No. 68-1). 14 Id. 25. 15 Declaration of Mark Chait, (Doc. No. 96-1 ¶ 7). 16 Id. The Debtor’s financial difficulties arose from its efforts to expand its business.17 In August 2024, the Debtor opened a second location (the “Osprey

Premises”). 18 But that location proved unsuccessful: “[a] general lack of foot traffic and signage, compounded by a hurricane, rendered the Osprey Premises undesirable and unprofitable for the Debtor.”19 The Debtor thereafter faced litigation seeking accelerated rent under the lease for the Osprey Premises, as

well as disputed franchise fees.20 In response to those financial pressures, the Debtor commenced this chapter 11 case on January 15, 2026.21 Early in the case, the Debtor obtained authority to reject the Franchise Agreement.22 Then, when the Franchisor sought reconsideration, the Debtor

negotiated a settlement to “release the Debtor and its principals from any further liability related to the Franchise Agreement.”23 The Court approved the settlement on August 12, 2026.24 Relieved of this obligation, the Debtor proposes to emerge from

bankruptcy pursuant to a plan of reorganization funded by operations at the Leased Premises.25 To that end, the Debtor asserts it is entitled to assume the

17 Case Management Summary (Doc. No. 13 ¶¶ 5-7). 18 The lease for the second location was executed on August 28, 2024. See generally Agreed Motion to Reject Unexpired Lease of Nonresidential Real Property (Doc. No. 49). 19 Doc. No. 13 ¶ 7. 20 Id. ¶¶ 7-9. 21 Id. ¶ 9. 22 Doc. No. 48. 23 Doc. No. 87 ¶ 11. 24 Doc. No. 98. 25 See generally J.L.E.T. Enterprises, LLC’s Plan of Reorganization (Doc. No. 54). Lease because it fulfilled its obligations under the Lease prior to filing for bankruptcy relief and the only amounts arguably due are some $500 in fees.26

And, since the petition date, the Debtor has paid all amounts due under the Lease.27 Under these circumstances, the parties do not dispute that the Debtor can cure any monetary default and provide adequate assurance of future performance, as required by § 365(b). Their disagreement lies elsewhere.

The Lessor objects to the assumption of the Lease on three grounds. First, it contends that the Debtor’s rejection of the Franchise Agreement constitutes an incurable default under the Lease.28 Second, it asserts that the Debtor violated Section 47 of the Lease by installing or maintaining signage

without the Lessor’s required approval.29 Third, the Lessor maintains that operation of an independent store at the Leased Premises would be incompatible with its leasing strategy for the Shoppes at University Town Center (the “Shopping Center”), which it characterizes as being

predominantly occupied by nationally and regionally recognized retailers.30

26 Doc. No. 61. See also Claim No. 6 (confirming Lessor’s pre-petition claim consists of late fee totaling $475.73; an administrative “stub rent” claim of $4.18; and unliquidated rejection damages). 27 See id. ¶ 10 (“Since the Petition Date, the Debtor has timely fulfilled all monetary obligations under the Lease as and when they accrued”). 28 Doc. No. 68 ¶¶ 7 & 8. 29 Doc. No. 96-1 ¶ 6 30 Id. ¶¶ 3-6. The Debtor responds that it can satisfy § 365’s requirements by curing any nonmonetary defaults upon assumption. In its view, the Lease requires

only that it continues to operate the same type of business, i.e., a premium pet food and pet grooming boutique.31 II. Legal Standard for Assuming an Unexpired Lease Section 365(a) authorizes a debtor, with court approval, to assume an

unexpired lease.32 Where the debtor is in default under the lease, however, § 365(b)(1) permits assumption only if the debtor: (1) cures the default or provides adequate assurance of a prompt cure; (2) compensates the nondebtor party for any actual pecuniary loss resulting from the default, or provides

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In Re: J.L.E.T. ENTERPRISES, LLC, (Fla. 2026).

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