What is the dependency between notice of breach and the cure period for Bombs Away franchisees?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
ial progress toward curing the violation within 30 days after receiving written notice from Franchisee detailing the alleged default. Termination by Franchisee is effective 10 days after Bombs Away Franchising receives written notice of termination.
14.2 Termination by Bombs Away Franchising.
- (a) Subject to 10-Day Cure Period. Bombs Away Franchising may terminate this Agreement if Franchisee does not make any payment to Bombs Away Franchising when due, or if Franchisee does not have sufficient funds in its account when Bombs Away Franchising attempts an electronic funds withdrawal, and Franchisee fails to cure such non-payment within 10 days after Bombs Away Franchising gives notice to Franchisee of such breach.
- (b) Subject to 30-Day Cure Period. If Franchisee breaches this Agreement in any manner not described in subsection (a) or (c), and Franchisee fails to cure such breach to Bombs Away Franchising's satisfaction within 30 days after Bombs Away Franchising gives notice to Franchisee of such breach, then Bombs Away Franchising may terminate this Agreement.
- (c) Without Cure Period. Bombs Away Franchising may terminate this Agreement by giving notice to Franchisee, without opportunity to cure, if any of the following occur:
- (i) Franchisee misrepresented or omitted material facts when applying to be a franchisee, or breaches any representation in this Agreement;
- (ii) Franchisee knowingly submits any false report or knowingly provides any other false information to Bombs Away Franchising;
- (iii) a receiver or trustee for the Business or all or substantially all of Franchisee's property is appointed by any court, or Franchisee makes a general assignment for the benefit of Franchisee's creditors, or Franchisee is unable to pay its debts as they become due, or a levy or execution is made against the Business, or an attachment or lien remains on the Business for 30 days unless the attachment or lien is being duly contested in good faith by Franchisee, or a petition in bankruptcy is filed by Franchisee, or such a petition is filed against or consented to by Franchisee and the petition is not dismissed within 45 days, or Franchisee is adjudicated as bankrupt;
- (iv) Franchisee fails to open for business by the date specified on the Summary Page;
- (v) Franchisee or any Owner commits a material violation of Section 7.2 (compliance with laws) or Section 13.1 (confidentiality), violates Section 13.2 (non-compete) or Article 15 (transfer), or commits any other violation of this Agreement which by its nature cannot be cured;
- (vi) Franchisee abandons or ceases operation of the Business for more than 15 consecutive days;
- (vii) Franchisee or any Owner slanders or libels Bombs Away Franchising or any of its employees, directors, or officers;
- (viii) Franchisee refuses to cooperate with or permit any audit or evaluation by Bombs Away Franchising or its agents or contractors, or otherwise fails to comply with Section 10.5 or Section 11.2.
- (ix) the Business is operated in a manner which, in Bombs Away Franchising's reasonable judgment, constitutes a significant danger to the health or safety of any person, and Franchisee fails to cure such danger within 48 hours after becoming aware of the danger (due to notice from Bombs Away Franchising or otherwise);
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, the cure period a franchisee is given to remedy a breach of the franchise agreement is dependent on Bombs Away providing notice of the breach. For specific breaches, Bombs Away may terminate the agreement if the franchisee fails to cure the breach within a specified period after receiving notice.
If a Bombs Away franchisee fails to make payments when due or lacks sufficient funds for electronic withdrawals, they have 10 days to cure the non-payment after Bombs Away provides notice. For breaches not related to non-payment or those that allow no cure period, the franchisee has 30 days to cure the breach to Bombs Away's satisfaction after receiving notice. However, Bombs Away can terminate the agreement without any cure period if the franchisee misrepresented facts during the application, knowingly submits false reports, or encounters certain financial difficulties like bankruptcy.
In certain situations, Bombs Away can terminate the franchise agreement with notice but without offering an opportunity to cure the breach. These situations include failing to open the business by the date on the Summary Page, violating compliance with laws or confidentiality, abandoning the business for more than 15 days, slandering Bombs Away, refusing to cooperate with audits, operating the business in a way that endangers health or safety without curing it within 48 hours, receiving multiple default notices, breaching other agreements with Bombs Away, being charged with a felony, or committing acts that could negatively affect the Bombs Away brand.