What section of the Anago Subfranchise Rights Agreement defines curable defaults?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
| f. Termination by franchisor with cause | Article 8 | We may only terminate your Subfranchise Rights Agreement with cause. |
|---|---|---|
| g. "Cause" defined – curable defaults | Section 8.3 | Any default other than those specified in Sections 8.1 and 8.2 of your Subfranchise Rights Agreement may be cured within 30 days of written notice from us of the default. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 44–52)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the section of the Subfranchise Rights Agreement that defines curable defaults is Section 8.3. This section specifies that any default, other than those listed in Sections 8.1 and 8.2, can be resolved within 30 days of Anago providing written notice of the default. This means that if a subfranchisee violates a term of the agreement that is not listed under non-curable defaults, they have a 30-day window to correct the issue after receiving notice from Anago.
This is a crucial aspect of the agreement for prospective Anago subfranchisees because it outlines the conditions under which they can rectify a breach of contract and avoid termination. The 30-day cure period provides an opportunity to address and resolve the issue, potentially saving the subfranchisee's business. However, it is important to understand exactly what constitutes a curable default versus a non-curable one, as the latter could lead to immediate termination.
In contrast, defaults specified in Sections 8.1 and 8.2 are considered non-curable, meaning they cannot be remedied and may result in immediate termination of the Subfranchise Rights Agreement. Examples of non-curable defaults include insolvency, bankruptcy filings, judgments of $5,000 or more remaining unsatisfied for 30 days or longer, failure to complete training, criminal acts, and breaches of confidentiality. Therefore, it is essential for potential Anago subfranchisees to carefully review Sections 8.1, 8.2, and 8.3 to fully understand their obligations and the potential consequences of non-compliance.
Understanding the distinction between curable and non-curable defaults is vital for any prospective Anago subfranchisee. While curable defaults offer a chance to rectify issues, non-curable defaults can lead to immediate termination. A clear understanding of these terms can help subfranchisees manage their business effectively and avoid actions that could jeopardize their franchise agreement.