What is the cure period for a Bang Cookies franchisee to resolve a failure to pay a third-party supplier?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
- (l) Franchisee, an Owner, and/or a Spouse, as applicable and whether individually or jointly, breaches or is in default of an Ancillary Agreement, and, if the applicable agreement provides for the opportunity to cure, fails to timely cure the breach or default of the Ancillary Agreement, including, without limitation, the Franchise Owner and Spouse Agreement and Guaranty;
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
The 2024 Bang Cookies Franchise Disclosure Document outlines various scenarios in which the franchisor can terminate the franchise agreement. However, it does not explicitly state the cure period for a franchisee's failure to pay a third-party supplier.
While the FDD mentions that a franchisee's breach of an ancillary agreement may provide an opportunity to cure, it does not specify the length of the cure period. It states that if the applicable agreement provides for the opportunity to cure, the franchisee must timely cure the breach or default of the Ancillary Agreement.
Therefore, a prospective Bang Cookies franchisee should seek clarification from the franchisor regarding the specific cure period allowed for failure to pay a third-party supplier. This information is crucial for understanding the franchisee's obligations and potential consequences of non-payment.