Under the Azal Coffee Franchise Agreement, is the cancellation of a guaranty considered a curable default?

According to Azal Coffee's 2024 Franchise Disclosure Document, the cancellation of a guaranty is considered a curable default under the terms of the Franchise Agreement. Specifically, Section 15.4 of the Franchise Agreement, along with Section J of both the Renewal and Transfer Addenda, define curable defaults.

If a franchisee commits a curable default, Azal Coffee provides an opportunity to remedy the situation. The cure period is 10 days for monetary defaults and 30 days for other defaults. This means that if a guaranty is canceled, the franchisee typically has 30 days to rectify the situation to avoid termination of the agreement.

Other examples of curable defaults include failing to enter into a lease for the franchise location, being unable to complete training or obtain necessary permits, a substantial number of customer complaints, health or safety hazards to customers, being unable to pay debts, bankruptcy or receivership, failing to pay a final judgment, failing to operate according to standards, failing to purchase from designated suppliers, and disputes among owners that materially affect the business. This is a fairly standard practice in franchising, as it gives franchisees a chance to correct issues before facing termination.