What section(s) of the Baya Bar Franchise Agreement define 'cause' related to non-curable defaults?

According to Baya Bar's 2024 Franchise Disclosure Document, the sections in the Multi-Unit Development Agreement that define 'cause' related to non-curable defaults are Sections 7.1 and 7.2. These sections outline the specific events that will lead to an automatic termination of the agreement without notice.

These events include scenarios such as insolvency, bankruptcy, a written admission of inability to pay debts, receivership, levy, composition with creditors, an unsatisfied final judgment for more than 30 days, or a foreclosure proceeding that is not dismissed within 30 days. Additionally, Baya Bar may terminate the agreement with notice if the franchisee fails to meet certain obligations.

These obligations include failing to acquire a site, complete construction, obtain permits, or open the franchised business within the required time frames. Other causes for termination include falsifying reports, ceasing operations for 5 or more days (with exceptions for premises damage and relocation applications), losing possession of the premises (with similar exceptions), failing to restore and re-open the business within 120 days after a casualty, failing to comply with applicable laws, defaulting under any lease for the premises, understating gross revenue multiple times, failing to comply with insurance and indemnification requirements, attempting an unauthorized transfer, or misrepresenting material facts in the franchise application.

Further causes for termination by Baya Bar include convictions of felonies or crimes that could damage the brand's reputation, receiving adverse judgments involving fraud or similar claims, concealing revenues or maintaining false books, creating a threat to public health or safety, refusing inspections or audits, unauthorized use of trademarks or confidential information, failing to comply with non-competition covenants, defaulting in obligations multiple times, receiving multiple default notices, defaulting under other agreements with Baya Bar, having insufficient funds to honor checks, or terminating the Franchise Agreement without cause. Prospective franchisees should carefully review these sections to understand the full scope of actions that could lead to termination of the agreement.