Under what conditions can Bor Restoration terminate a franchise agreement?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
ment that does not have its own cure period and is not identified in Section 10.1 and fail to cure within the 30 days.
10.3 Cross Default
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- a. If you are a party to any other Franchise Agreements with us or are a party to any agreements with an Affiliate, and if such agreement is breached and not timely cured within the period permitted in such document with the result being that that agreement is terminated, then we have the right to terminate your franchise rights without affording you any additional right to cure.
- b. If you violate the terms, covenants, or conditions of any other contract or agreement with a third party that is unrelated to us but which is material to the operation of the Business, including any real property or equipment lease (Third Party Contract) and fail to cure any such breach within the time permitted under such Third Party Contract, and as a result, you are unable, (i) to operate this Business in the manner that you were able to before the breach of the other agreement; or, (ii) to operate any other Business under a separate franchise agreement (cross-default); or, (iii) operate the Business under the terms of this Franchise Agreement, then upon termination of said Third Party Contract, this and all other franchise agreements with us may, in our sole and exclusive discretion, also be terminated at the same time as the Third Party Contract terminates.
Source: Item 16 — Restrictions on What the Franchisee May Sell (FDD page 33)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, Bor Restoration can terminate a franchise agreement under certain conditions. Specifically, if a franchisee has other franchise agreements with Bor Restoration or agreements with an affiliate, a breach of those agreements that leads to termination can result in the termination of the current franchise agreement without additional opportunity to cure the breach.
Additionally, Bor Restoration may terminate the franchise agreement if the franchisee violates the terms of a contract with a third party that is material to the operation of the Bor Restoration business. This includes leases for real property or equipment. If the franchisee fails to cure the breach within the time permitted under the third-party contract, and this failure impairs the franchisee's ability to operate the business, Bor Restoration can terminate the franchise agreement. The franchisee is required to notify Bor Restoration immediately if such a material agreement is terminated.
Furthermore, Bor Restoration states that should any criminal or credit background checks done during the term of the franchise agreement disclose any material change in the franchisee's status, the same may result in the termination of their franchise. This indicates that maintaining a clean criminal and credit history is an ongoing requirement for Bor Restoration franchisees.
These termination conditions highlight the importance of franchisees maintaining compliance with all agreements, including those with Bor Restoration, its affiliates, and third parties, as well as maintaining a satisfactory background check status. Failure to do so could result in the termination of the Bor Restoration franchise.