What is the cure period for a material breach by 1 800 Packouts before the franchisee can terminate?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary | |
|---|---|---|---|
| d. | Termination by 3B franchisee | 15.A | If we commit a material breach and fail to cure such breach within 60 days after written notice of the breach is delivered to us; or if such breach cannot be reasonably cured within 60 days after our receipt of such notice, undertake within 60 days after receipt of such notice, and continue until completion, reasonable efforts to cure such breach, you may terminate the Franchise Agreement effective 10 days after delivery of written notice. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–53)
What This Means (2025 FDD)
According to 1 800 Packouts's 2025 Franchise Disclosure Document, if 1 800 Packouts commits a material breach of the franchise agreement, the franchisee must provide written notice of the breach. 1 800 Packouts then has 60 days to cure the breach.
If the breach cannot be reasonably cured within 60 days, 1 800 Packouts must undertake reasonable efforts to cure the breach within that initial 60-day period and continue those efforts until the breach is resolved. If 1 800 Packouts fails to cure the breach within the specified timeframe or to undertake reasonable efforts to do so, the franchisee can terminate the Franchise Agreement by providing written notice, which becomes effective 10 days after delivery.
This provision allows a 1 800 Packouts franchisee recourse if 1 800 Packouts fails to uphold its end of the agreement. However, the franchisee must follow the prescribed notification and waiting periods before terminating the agreement. It is important to note that the definition of what constitutes a 'material breach' is not defined in this section and would likely be subject to interpretation and potential dispute.