What is the length of the 'Notice to Cure' period for breaches of the Afuri Ramen Dumpling franchise agreement?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.3.1 Default with Opportunity to Cure. You agree that it will be a default constituting a substantial breach of a material provision of this Agreement pursuant to relevant law, thus establishing good cause for termination of this Agreement and any other franchise and related agreements between the parties if you (or your owners, officers, or key employees) breach any term or provision of this Agreement and do not cure the breach (or reasonably begin to cure and diligently pursue the cure until the breach is remedied) within 30 days after receipt of our written "Notice to Cure." Termination will occur immediately upon delivery to you of our written declaration of termination for failure to cure within the allowed time frame.
- 6.3.2 Termination Without Opportunity to Cure. You agree that it will be a default constituting a substantial breach of a material provision of this Agreement pursuant to relevant law, thus establishing good cause for us to immediately terminate this Agreement and any other franchise and related agreements between the parties without other cause, and without giving you an opportunity to cure, if you (or your owners, officers, or key employees):
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, if a franchisee breaches the franchise agreement, they typically have 30 days after receiving a written "Notice to Cure" from Afuri Ramen Dumpling to remedy the breach. The franchisee must either fully correct the issue within this period or demonstrate reasonable progress towards a cure, diligently pursuing it until the breach is resolved.
However, the FDD also states that there are circumstances where Afuri Ramen Dumpling can terminate the agreement immediately without providing an opportunity to cure. These situations typically involve more severe breaches, such as insolvency or bankruptcy.
It is important for prospective Afuri Ramen Dumpling franchisees to understand the specific conditions that trigger a 'Notice to Cure' and those that allow for immediate termination. Understanding these terms can help franchisees avoid potential breaches and protect their investment.