What is the maximum cure period 1-800-GOT-JUNK? must provide a franchisee to correct a failure to comply with the Franchise Agreement before termination?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
ailure 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. 17.3 Right of Termination Without Prior Notice of Default. Prior to expiration of the Term or any Renewal Term and notwithstanding anything otherwise contained in this Agreement, Franchisor shall have the right to terminate this Agreement and the right and license granted hereby to Franchisee without prior notice to Franchisee upon the occurrence of any of the following default events which are deemed non-curable: (a) Franchisee fails to commence operation of the Franchised Business on the Scheduled Opening Date;
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 thirty days to correct a failure to comply with the Franchise Agreement. However, the cure period can be longer than 30 days if the nature of the default is such that it cannot be cured within a thirty-day period, and the franchisee takes reasonable action to cure such default immediately upon receiving notice and diligently continues to do so. In this case, the franchisee has such additional period of time as is reasonably necessary to cure such default.
There is an exception to this rule. If a 1-800-GOT-JUNK? franchisee receives a notice of default pursuant to Section 17.1 on three or more occasions during any consecutive twelve-month period, 1-800-GOT-JUNK? may terminate the agreement immediately upon written notice, and the franchisee will not have an opportunity to cure the current default.
It's also important to note that Wisconsin franchisees have certain rights that supersede the franchise agreement. The Wisconsin Fair Dealership Law applies to most franchise agreements in the state and prohibits termination, cancellation, nonrenewal, or substantial change in the competitive circumstances of a dealership agreement without good cause. Wisconsin law requires that 1-800-GOT-JUNK? provide 90 days prior written notice of the proposed termination, and the franchisee has 60 days to cure the deficiency. If the deficiency is cured, the notice is void.