What is the cure period allowed for defaults related to payments owed to Bee Organized?
Bee_Organized Franchise · 2025 FDDAnswer from 2025 FDD Document
s, misuses, or makes any unauthorized use of the Licensed Marks, the Confidential Information, and/or the System and/or Franchisee materially impairs the goodwill associated with the Licensed Marks, and/or Franchisee applies for registration of the Licensed Marks anywhere in the world; and/or
- (r) Franchisee and/or an Owner fails to comply with Anti-Terrorism Laws or becomes listed on the Annex to Executive Order 13244.
- (3) Defaults and Automatic Termination After 10 Day Cure Period Franchisee shall be in default of this Agreement and, this Agreement shall be terminated, upon the occurrence of any one or more of the following actions, inactions, omissions, events, and/or circumstances, unless, Franchisee timely cures, to the satisfaction of Franchisor, such default/action, inaction, omission, event, and/or circumstance within 10 calendar days of Franchisor's written notice:
- (a) Franchisee fails, refuses, and/or is unable to timely pay and/or satisfy the Royalty Fee, Advertising Contribution, and/or any other payment, fee, financial obligation, charge, and/or monetary obligation payable and/or due to Franchisor pursuant to the terms of this Agreement, under this Agreement, and/or any other agreement between Franchisor and Franchisee;
- (b) Franchisee and/or Franchisee's affiliate fails, refuses, and/or is unable to pay and/or satisfy any payment, fee, financial obligation, charge, and/or monetary obligation payable to Franchisor and/or Franchisor's affiliates pursuant to this Agreement and/or any other agreement between or among Franchisor, Franchisor's affiliate, Franchisee and/or Franchisee's affiliate; and/or
(c) Franchisee fails or refuses, at any time, and, without legal justification as may be determined by Franchisor in Franchisor's Reasonable Business Judgment, to pay any third party supplier or vendor for any goods, products, supplies, equipment, materials and/or any other items used by, benefitting, and/or intended to benefit the Franchised Business.
The foregoing events of default set forth in this Article 16.A.(3) shall exclude events of default that are otherwise governed by and/or constitute events of default under Article 16.A.(1) or Article 16.A.(2). In the event of any inconsistency or conflict between the provisions of this Article 16.A.(3) with Article 16.A.(1), Article 16.A.(1) shall take precedence and govern. In the event of any inconsistency or conflict between the provisions of this Article 16.A.(3) with Article 16.A.(2), Article 16.A.(2) shall take precedence and govern.
Source: Item 23 — RECEIPTS (FDD pages 54–218)
What This Means (2025 FDD)
According to Bee Organized's 2025 Franchise Disclosure Document, a franchisee has a 10-day cure period to rectify defaults related to payments owed to Bee Organized. Specifically, if a franchisee fails to pay the Royalty Fee, Advertising Contribution, or any other financial obligation, they have ten calendar days from written notice to resolve the issue to Bee Organized's satisfaction. Failure to cure within this timeframe results in the termination of the franchise agreement.
This 10-day cure period also applies if the franchisee or their affiliate fails to satisfy any payment, fee, financial obligation, charge, or monetary obligation payable to Bee Organized or its affiliates under the Franchise Agreement or any other agreement between the parties. Additionally, the 10-day cure period applies if the franchisee fails or refuses to pay any third-party supplier or vendor for any goods, products, supplies, equipment, materials, or any other items used by, benefitting, and/or intended to benefit the Franchised Business.
However, it's important to note that Bee Organized can terminate the agreement without any opportunity to cure if the franchisee engages in actions that constitute a default under Articles 16.A.(3) and/or 16.A.(4) on three or more instances, regardless of whether the defaults were previously cured or subject to a notice of default. This highlights the importance of consistent compliance with the franchise agreement to avoid potential termination without a cure period.
This cure period is a fairly standard practice in franchising, allowing franchisees a short window to correct payment defaults. However, the "three strikes" provision where repeated defaults can lead to termination without cure is something a prospective franchisee should carefully consider. It emphasizes the need for franchisees to maintain diligent financial management and adhere strictly to the terms of the franchise agreement to avoid jeopardizing their franchise.