If a 1-800-GOT-JUNK? franchisee fails to comply with any agreement with an Affiliate of the Franchisor, how long do they have to cure the default?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
failure to comply with any other obligation of Franchisee contained in this Agreement or any other agreement between Franchisee and Franchisor or any Affiliate or nominee of Franchisor, or any other failure to be in good standing with Franchisor, including for failure to conduct the Franchised Business in a businesslike manner, and Franchisee fails to cure such default within thirty (30) days after written notice of the default has been delivered to 4908-1371-6037.2 Franchise Agreement 4/22 Franchisee; provided, however, that if the nature of such default is such that it cannot be cured within a thirty (30) day period, and Franchisee takes reasonable action to cure such default immediately upon receiving such notice and diligently continues to do so, then Franchisee shall have such additional period of time as is reasonably necessary to cure such default.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, a franchisee has 30 days to cure a default if they fail to comply with any obligation in any agreement with an Affiliate of the franchisor. This 30-day period begins after written notice of the default has been delivered to the franchisee.
However, if the default cannot be reasonably cured within 30 days, the franchisee is granted additional time to cure the default, provided they take reasonable action immediately upon receiving notice and diligently continue to do so. This clause protects the franchisee from immediate termination if the issue requires more than a month to resolve, as long as they are actively working towards a solution.
It's important to note that if a 1-800-GOT-JUNK? franchisee receives a notice of default on three or more occasions (whether or not cured) during any consecutive 12-month period, the franchisor can terminate the agreement immediately upon written notice. In this case, the franchisee will not have an opportunity to cure the current default. This highlights the importance of consistent compliance with all agreements to avoid potential termination.