Does the Beggars Pizza franchisee have an opportunity to cure a default if they are convicted of a felony?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.3 Notice With Opportunity to Cure.
Except as otherwise provided in Section 15.1 and Section 15.2, upon any other default by Franchisee, Franchisor may terminate the Agreement by giving written notice of termination in the manner set forth under Section 22 stating the nature
of the default to Franchisee at least thirty (30) days prior to the effective date of termination; provided, however, that Franchisee may avoid termination by immediately initiating a remedy to cure such default, curing it to Franchisor's satisfaction, and by promptly providing proof thereof to Franchisor within the applicable cure period. If any such default is not cured within the specified time, or such longer period as applicable law may require, the Agreement will terminate without further notice to Franchisee, effective immediately upon the expiration of the applicable cure period or such longer period as applicable law may require. Defaults which are susceptible of cure hereunder include the following illustrative events:
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
The 2025 Beggars Pizza Franchise Disclosure Document outlines the conditions under which a franchisee may be terminated and whether they have an opportunity to cure the default. Section 15.3 generally allows a 30-day cure period for defaults, but this is subject to exceptions as outlined in Sections 15.1 and 15.2.
However, the FDD excerpts provided do not explicitly state whether a franchisee has the opportunity to cure a default specifically if they are convicted of a felony. Section 15.3 indicates that upon any default, other than those listed in 15.1 and 15.2, the franchisee has an opportunity to cure the default within thirty days of written notice.
To determine whether a felony conviction falls under the curable defaults, prospective Beggars Pizza franchisees should review Sections 15.1 and 15.2 of the Franchise Agreement within the FDD to see if a felony conviction is listed as an incurable default. If it is not listed there, then the franchisee may have 30 days to cure the default. If the FDD does not provide sufficient clarity, it is recommended that prospective franchisees seek clarification from the franchisor regarding the specific circumstances under which a franchisee can cure a default, including those related to criminal convictions.