Under what conditions can Buff City Soap terminate the agreement for failure to comply with other provisions?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
The occurrence of any of the following will adversely and substantially affect the interests of Franchisor and will be deemed an Event of Default constituting just cause for exercising any of the remedies set forth herein.
- (a) Termination for Events of Default. Franchisor may terminate this Agreement upon delivery to Developer of Notice as a result of the occurrence of any of the following Events of Default and Developer's failure to cure such Event of Default within the cure period described below, if any, and absent a cure period, immediately upon Franchisor's Notice to Developer:
- (1) Developer fails to comply with the Development Schedule during any Development Period pursuant to Section 4 and Exhibit A of this Agreement and fails to cure such default within 30 days after Notice of such Event of Default is delivered to Developer.
- (2) Developer fails to pay any fees or other amounts due hereunder to Franchisor within five days after Notice of nonpayment is delivered to Developer.
- (3) Developer (or any of its Principals or Affiliates) has made any material misrepresentation or omission in connection with this Agreement that negatively impacts Franchisor.
- (4) Developer or any of its Principals is or has been held liable or convicted by a court of law, pleads or has pleaded no contest to, a felony, indictable offense or other unlawful act, engages in any dishonest or unethical conduct or otherwise engages in any act or conduct which Franchisor believes will, if continued, materially and adversely affect the reputation of the Brand, the Makeries, any other Buff City Soap makeries or the goodwill associated with Marks.
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
According to the 2025 Buff City Soap Franchise Disclosure Document, Buff City Soap can terminate the franchise agreement if the franchisee fails to comply with certain provisions, which are considered Events of Default. Buff City Soap must provide notice to the franchisee, and the franchisee has a specific period to correct the issue. If the franchisee fails to cure the default within the given timeframe, Buff City Soap can terminate the agreement. However, in some cases, there is no cure period, and termination can occur immediately upon notice.
Specifically, Buff City Soap may terminate the agreement if the franchisee fails to comply with the Development Schedule during any Development Period, as outlined in Section 4 and Exhibit A of the agreement, and fails to correct this within 30 days after receiving notice. Another cause for termination is the failure to pay any fees or other amounts due to Buff City Soap within five days after receiving notice of nonpayment.
Furthermore, Buff City Soap can terminate the agreement if the franchisee (or any of its Principals or Affiliates) makes any material misrepresentation or omission in connection with the agreement that negatively impacts Buff City Soap. Finally, if the franchisee or any of its Principals is held liable or convicted of a felony or engages in dishonest or unethical conduct that could materially and adversely affect the reputation of the Buff City Soap brand, the franchise agreement can be terminated.