How many days does a Bombs Away franchisee have to cure a non-payment default?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or | Summary |
|---|---|---|
| f. Termination by | § 14.2 | We may terminate your franchise |
| franchisor with cause | agreement for cause, subject to any applicable notice and cure opportunity. | |
| g. “Cause” defined-- | Non-payment by you (10 days to cure); | |
| curable defaults | violate franchise agreement other than non- curable default (30 days to cure). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 28–31)
What This Means (2024 FDD)
According to the 2024 Bombs Away Franchise Disclosure Document, a franchisee has a limited time to correct a failure to pay. Specifically, if a Bombs Away franchisee fails to make required payments, they have only 10 days to cure this default. If the franchisee rectifies the non-payment within this 10-day period, Bombs Away will not terminate the franchise agreement.
This short cure period highlights the importance of maintaining strong financial management and ensuring timely payments to Bombs Away. Failing to address a non-payment issue promptly can lead to the termination of the franchise agreement, resulting in the loss of the business.
Cure periods are common in franchising, allowing franchisees an opportunity to fix breaches of the agreement. However, the length of the cure period can vary. The Bombs Away franchise agreement specifies a relatively short cure period for non-payment compared to the cure period for other violations of the franchise agreement. Franchisees should be aware of these timelines and prioritize financial obligations to avoid potential termination.