What constitutes 'cause' for termination of the Beverly Anns Cookie Franchise Agreement, specifically regarding curable defaults?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement/Additional Franchise Reservation Agreement | Summary |
|---|---|---|
| Franchise Agreement and | ||
| the Additional | ||
| Franchise Reservation Agreement | ||
| if any other | ||
| franchise | ||
| agreement | ||
| or | ||
| other | ||
| agreement | ||
| between you or your affiliates and us or any of | ||
| our affiliates is terminated. | ||
| (g) "Cause" defined - curable defaults | Section 24/Not Applicable | You have three days to cure health, safety, or sanitation law violations or failure to operate safely. You have ten days to cure monetary defaults. You have 30 days to cure the operational defaults listed in Section 24.3 of the Franchise Agreement: failure to satisfactorily complete the initial training program, or failure to comply with System Standards. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 49–54)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, 'cause' for termination involving curable defaults is defined with specific timeframes for franchisees to rectify the issues. A franchisee has three days to correct violations of health, safety, or sanitation laws, or any failure to operate the business safely. For monetary defaults, the franchisee is given ten days to resolve the outstanding payments or financial discrepancies.
The FDD also specifies a 30-day cure period for certain operational defaults. These include failing to satisfactorily complete the initial training program or not complying with the System Standards set by Beverly Anns Cookie. System Standards typically cover a range of operational requirements, such as store appearance, product quality, and customer service protocols.
These cure periods are crucial for franchisees as they provide a window to address and resolve issues before Beverly Anns Cookie can terminate the franchise agreement. Failing to cure these defaults within the specified timeframes can lead to termination, highlighting the importance of adhering to health, safety, operational, and financial standards set by the franchisor.