If a 1-800-GOT-JUNK? franchisee fails to comply with any obligation in any agreement with the franchisor, how long do they have to cure the default?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) failure to pay any sum when due to Franchisor, any Affiliate or nominee of Franchisor, Franchisee’s landlord, any governmental authority, the lessor of any Vehicle, supplier of any item of Supplies or other inventory, equipment or products to the Franchised Business, or any other third party providing any goods or services to the Franchised Business, and Franchisee fails to cure such non-payment within fifteen (15) days after written notice of such default has been delivered to Franchisee; or (b) 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. 17.2 Termination for Multiple Defaults. If Franchisee has received a notice of default pursuant to Section 17.1 on three (3) or more occasions (whether or not cured) during any consecutive twelve (12) Month period during the Term, then Franchisor may terminate this Agreement immediately upon written notice to Franchisee made expressly pursuant to this Section 17.2 and Franchisee shall have no opportunity to cure the current 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 typically has 30 days to cure a default if they fail to comply with any obligation in the Franchise Agreement or any other agreement with 1-800-GOT-JUNK?. This includes failing to maintain good standing with the franchisor or failing to conduct the franchised business in a businesslike manner. The cure period begins after written notice of the default is delivered to the franchisee.
However, if the default involves non-payment of any sum due to 1-800-GOT-JUNK?, its affiliates, the franchisee's landlord, a governmental authority, a vehicle lessor, a supplier, or any other third party providing goods or services, the franchisee has only fifteen (15) days to cure the non-payment after receiving written notice.
There is an exception to the 30-day cure period. If the nature of the default is such that it cannot be cured within 30 days, and the franchisee takes reasonable action to begin curing the default immediately upon receiving notice and diligently continues to do so, the franchisee will be granted such additional time as is reasonably necessary to cure the default. However, if a franchisee receives a notice of default on three or more occasions (whether or not cured) during any consecutive 12-month period, 1-800-GOT-JUNK? can terminate the agreement immediately upon written notice, and the franchisee will not have an opportunity to cure the current default.