Does the 'cause' for termination by Beyond Juicery Eatery include curable defaults?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
nham Act, 15 U.S.C. Sec. 1051 et. seq) and disputes over | | | | copyrights will be governed by federal copyright laws of the United | | | | States. | | Provision | Section in Franchise | Summary | | | Agreement | | |---------------------------------------------|-----------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | Restaurant for more than 2 days in a 30-day period from the date of last | | | | closure; (viii) you fail to comply with modifications to System Standards | | | | and Specifications within the required time period; (ix) you fail to carry or | | | | have a lapse in coverage of the insurance we require; and do not correct | | | | within 5 business days of receipt of written notice to you; (x) you fail to | | | | receive our prior written approval and use products or materials that do | | | | not meet our Standards and Specifications and do not promptly | | | | discontinue use after written notice from us; (xi) you fail to timely | | | | provide us with any report, statement, or return required by this | | | | Agreement; (xii) you commit a breach or are in default under any | | | | agreement with any of our Approved or Designated Suppliers or any or | | | | supplier or vendor that provides goods or services to you or your | | | | franchised Restaurant; or (xiii) you engaged in conduct that compromised | | | | your ability to comply with the terms of the Franchise Agreement or that | | | | negatively and materially impacted the business of your Restaurant or any | | | | other part of the System, including but not limited to your relationship | | | | with approved or designated suppliers or vendors. | | h. | Section 15 | Defaults for which termination of the Franchise Agreement may occur | | "Cause" defined- non-curable defaults | | without opportunity to cure include: | | | | (i) failure to commence construction of the Restaurant or open and | | | | thereafter continually operate the Restaurant as described herein; (ii) | | | | failure of you or any Franchisee Designate, Control Person, or Manager to | | | | complete all required training programs to our satisfaction, in our sole and | | | | unfettered judgment; (iii) the breach or falsity of any representation, | | | | covenant or warranty herein; (iv) failure to deliver executed covenants as | | | | required in Section 7.05; (v) failure to comply with or perform its | | | | covenants, obligations and agreements herein; (vi) any Transfer that (a) | | | | occurs other than as provided in Section 13 of the Franchise Agreement or | | | | (b) fails to occur within the time periods described in Section 13 of the | | | | Franchise Agreement (notwithstanding any lack of, or limits upon, the | | | | enforceability of any term or provision of Sections 12 or 13); (vii) you (a) | | | | are adjudicated, or are, bankrupt or insolvent, (b) make an assignment for | | | | the benefit of creditors, or (c) seek protection from creditors by petition in | | | | bankruptcy or otherwise or there is filed against you a similar petition | | | | which is not dismissed within thirty (30) days; (viii) the appointment of a | | | | liquidator or receiver for (a) all or substantially all of your assets or (b) | | | | any Restaurant owned by you or an Affiliate is sought which is not | | | | dismissed within thirty (30) days; (ix) breach or failure to perform any | | | | other term or condition of this Agreement; (x) an Event of Default shall | | | | arise under any other agreement between you and us, between you and | | | | any affiliate of ours, or between you and your landlord, or any vendor of | | | | the Restaurant in which you have no opportunity to cure, or which you, | | | | your affiliate, or any Principal Owner has failed to cure; (xi) a breach and | | | | failure to cure under any agreement with one of our Designated or | | | | Approved Suppliers or any other supplier or vendor that provides goods | | | | or services to you or your franchised Restaurant; (xii) you engage in any | | | | dishonest or unethical conduct which may adversely affect the reputation | | | | of the Restaurant, or the general goodwill associated with the Trademarks; | | | | you violate any covenant of confidentiality or non-disclosure provision | | | | contained in this Agreement or you otherwise disclose, use, or permit the | | | | use of copies, duplicates, records, transmits, or otherwise reproduce any | | | | Operations Manuals, business forms, videos, DVD/CD-ROMS, | | | | audiotapes, material or proprietary information, knowledge or know-how | | | | created or used by us and designated for confidential use within the | | | | System, without our prior written approval; (xiii) you or any Principal | | | | Owner is convicted of, pleads guilty or no contest to or we have | | | | reasonable proof that you or a Principal Owner has committed a felony or | | | | a crime involving moral turpitude or any other crime or offense that we |
| Provision | Section in Area | Summary | |
|---|---|---|---|
| Development Agreement | |||
| t. Integration/merger clause | Section 21 | Only the terms of the Area Development Agreement are binding (subject to state law). Any representations or promises outside of the disclosure document and franchise agreement may not be enforceable. | |
| u. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 50–56)
What This Means (2025 FDD)
According to Beyond Juicery Eatery's 2025 Franchise Disclosure Document, the franchise agreement outlines specific defaults that can lead to termination, distinguishing between those that are curable and those that are not. Certain defaults allow the franchisee an opportunity to correct the issue within a specified timeframe, while others are considered non-curable and can result in immediate termination.
Curable defaults include instances such as failing to comply with modifications to System Standards and Specifications within the required time period, failing to maintain required insurance coverage and not correcting it within 5 business days of written notice, failing to obtain prior written approval for using non-compliant products or materials and not discontinuing their use after notice, failing to provide timely reports, statements, or returns, breaching agreements with approved suppliers, or engaging in conduct that compromises the franchisee's ability to comply with the Franchise Agreement or negatively impacts the business.
Non-curable defaults include failure to commence construction or continuously operate the Restaurant, failure of the franchisee or their personnel to complete required training, breach or falsity of any representation, covenant or warranty, failure to deliver executed covenants, any unauthorized Transfer, bankruptcy or insolvency, appointment of a liquidator or receiver, breach of any agreement with Designated or Approved Suppliers, engaging in dishonest or unethical conduct, violating confidentiality or non-disclosure provisions, or conviction of a felony or crime involving moral turpitude. The distinction between curable and non-curable defaults is important for prospective franchisees to understand, as it defines the circumstances under which they have an opportunity to rectify issues and avoid termination of their franchise agreement with Beyond Juicery Eatery.