What constitutes a transfer event of default for Beyond Juicery Eatery that cannot be cured?
Beyond_Juicery_Eatery Franchise · 2025 FDDAnswer from 2025 FDD Document
15.01 A. The following shall constitute Events of Default by you or any Principal Owner for which there shall be no opportunity to cure and for which notice of termination is not required: (i) failure to commence construction of your Restaurant or open and thereafter continually operate your 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 or (b) fails to occur within the time periods described in Section 13 (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
Source: Item 23 — RECEIPTS (FDD pages 60–337)
What This Means (2025 FDD)
According to the 2025 FDD, Beyond Juicery Eatery outlines specific events of default related to transfers that cannot be cured. If a franchisee attempts a transfer that does not comply with the stipulations in Section 13 of the franchise agreement, or if the transfer does not occur within the time frame specified in Section 13, it constitutes an incurable event of default. This applies regardless of the enforceability of any term or provision within Sections 12 or 13 of the agreement.
This means that any unauthorized transfer or failure to complete a transfer within the set timeframe gives Beyond Juicery Eatery grounds for immediate termination without an opportunity for the franchisee to correct the issue. This provision underscores the importance Beyond Juicery Eatery places on controlling who operates its franchises and ensuring transfers are handled according to their established procedures.
For a prospective franchisee, this highlights the critical need to fully understand and adhere to the transfer provisions outlined in Sections 12 and 13 of the franchise agreement. Failure to follow these procedures can result in the immediate loss of the franchise. It is advisable to seek legal counsel to fully comprehend these sections before entering into a franchise agreement with Beyond Juicery Eatery.