What is the cure period for an Aplus franchisee to obtain or maintain required insurance coverage after receiving a written notice of termination?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.3. Termination with 10-Day Cure Period.
Franchisor has the right to terminate this Agreement, which termination will become effective upon delivery of written notice of termination, if you fail to cure the following defaults within 10 days after delivery of written notice: (a) failure to obtain or maintain required insurance coverage; (b) failure to pay any amounts due to Franchisor; (c) failure to pay any amounts due to your trade creditors (unless such amount is subject to a bona fide dispute); and (d) failure to pay any amounts for which Franchisor has advanced funds for or on your behalf, or upon which Franchisor is acting as guarantor of your obligations.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, if a franchisee fails to obtain or maintain the required insurance coverage, they have a 10-day cure period after receiving written notice from Aplus. During this period, the franchisee must rectify the insurance coverage deficiency to avoid termination of the franchise agreement.
This 10-day cure period is specifically outlined for failure to obtain or maintain required insurance coverage, failure to pay amounts due to Aplus, failure to pay amounts due to trade creditors (unless subject to a bona fide dispute), and failure to pay amounts for which Aplus has advanced funds or is acting as a guarantor. This means Aplus provides a short window for franchisees to correct these specific defaults.
It is important for prospective Aplus franchisees to understand the implications of failing to maintain insurance coverage and the importance of acting swiftly upon receiving a notice of termination. Failing to cure the deficiency within the 10-day period will result in the termination of the franchise agreement.