What are the curable defaults that could lead to termination of the Better Blend franchise agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | Summary |
|---|---|---|
| g. “Cause” defined-- | Non-payment by you (10 days to cure); violate | |
| curable defaults | franchise agreement other than non-curable | |
| default (30 days to cure). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 34–38)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, there are specific actions or failures that can lead to the termination of the franchise agreement, but which the franchisee has an opportunity to correct. These 'curable defaults' allow a franchisee to rectify the situation and avoid termination.
The FDD specifies two main curable defaults. The first is non-payment, where the franchisee fails to pay amounts owed to Better Blend. In this case, the franchisee has 10 days to cure the non-payment after receiving notice. The second curable default is violating any other term of the franchise agreement that is not defined as a 'non-curable default.' For these violations, Better Blend provides a 30-day period to correct the issue after receiving notice.
It is important for a prospective Better Blend franchisee to understand the distinction between curable and non-curable defaults. Non-curable defaults, such as misrepresentation during the application process or bankruptcy, typically result in immediate termination without an opportunity to cure. Paying close attention to the terms of the franchise agreement and addressing any issues promptly can help a franchisee avoid termination and maintain a successful business relationship with Better Blend.