Under what circumstances can Annex Brands terminate a franchise agreement without allowing the franchisee an opportunity to cure the issue?

Franchisee.

15. TERMINATION OF FRANCHISE BY FRANCHISOR

• A. TERMINATION WITHOUT OPPORTUNITY TO CURE. Franchisor may, in its sole discretion, terminate the Franchise, effective upon giving written notice of termination to Franchisee, if Franchisee or any of its owners:
  • 1. has intentionally made any material misrepresentation or omission in connection with his, her or their application for the Franchise;
  • 1. is convicted of or pleads no contest to a felony or other crime or offense that may adversely affect the reputation of Franchisee or the Center;
  • 1. makes any unauthorized use or disclosure of any of the Confidential Information;
  • 1. surrenders or transfers control of the operation of the Center, or breaches any of the provisions of Subsections 13.B, 13.D, 13.E or 13.G of this Agreement;
  • 1. submits to Franchisor on 3 or more separate occasions at any time during the term of the Franchise granted under this Agreement any reports or other data, information or supporting records which understate by more than 5% the royalty fees or marketing fees for any period of 1 or more months;

• 1. knowingly and intentionally misuses or makes an unauthorized use of any Mark or commits any act which Franchisor in good faith believes may reasonably be expected to impair the goodwill associated with any Mark;
• 1. terminates or cancels, or allows the termination or cancellation of the lease or sublease of the Center, except as otherwise provided in Subsection 2.C of this Agreement;
  • 1. fails to complete the full initial training program;
• 1. has been given 3 or more notices of breaches within any period of 12 consecutive months with respect to Franchisee's failure to:
  • a) submit when due reports or other information or supporting records;
• b) pay when due royalty fees, marketing fees, national convention participation deposits, technology services fees, insurance premiums, or other fees under this Agreement and all other agreements, expenses, equipment lease or rental payments and/or supplies payments, purchases from Franchisor and its affiliates, interest, late fees, or any other indebtedness to Franchisor or its affiliates; or
• c) comply with this Agreement, regardless whether such failure to comply is corrected after written notice of default is given to Franchisee.

or

• 1. fails to locate an acceptable site or open the Center within 365 days after the execution of this Agreement, except as otherwise provided in Subsection 8.A of this Agreement.
• B. TERMINATION WITH OPPORTUNITY TO CURE.

Source: Item 22 — Contracts (FDD pages 109–110)