Under what conditions can the Bath Tune Up franchisor cure a franchisee's default?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee is terminated by Franchisor because of breach or default by Franchisee or failure of a condition to continued effect of the franchise agreement.
- (m) If Franchisee applies a deposit from a customer intended to be used to purchase Product for that customer's order for any other purpose.
- (n) If a repeated audit reveals repeated understatement of Gross Revenues by 5% or more as stated in Section 8.6(c).
10.3. Termination Subject to Opportunity to Cure
Except for failure of the conditions listed in Section 10.2, above, or as otherwise expressly provided in this Agreement, Franchisee will have 30 days after Franchisor's written notice within which to cure any breach of this Agreement, and to provide evidence of the cure to Franchisor. If any default is not cured within that time period, or any longer time period that applicable law requires or that Franchisor specifies in the written notice, this Agreement and all rights granted by it will thereupon automatically terminate without further notice or opportunity to cure.
**10.4.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the franchisor does not cure a franchisee's default. However, a Bath Tune Up franchisee typically has 30 days after receiving written notice from the franchisor to cure any breach of the franchise agreement. The franchisee must also provide evidence of the cure to the franchisor within this timeframe.
However, there are exceptions where the franchisee does not have an opportunity to cure a default. These exceptions include failure of conditions listed in Section 10.2 of the agreement or as otherwise expressly provided in the agreement. If the franchisee fails to cure the default within the specified time, the franchise agreement will automatically terminate without further notice or opportunity to cure, unless applicable law requires a longer cure period or the franchisor specifies a longer period in the written notice.
The description of any breach, default, or failure of a condition in any notice served by Bath Tune Up on the franchisee does not prevent the franchisor from specifying additional or supplemental breaches, defaults, or failures of conditions in any action relating to the agreement or its termination. This includes matters discovered after the termination is effective. Therefore, it is important for a prospective franchisee to understand the specific conditions that constitute a default and the potential consequences of failing to cure such defaults within the allotted time.