What is the cure period for monetary defaults under the Buns On Fire franchise agreement?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Article in the Franchise Agreement | Summary |
|---|---|---|
| a. Length of the franchise term | IV | 10 years. |
| b. Renewal or extension | IV | One additional term of 10 years. You have been in substantial compliance with agreement. You pay the renewal fee. You may have to remodel your location, at your expense. |
| c. Requirement for franchisee to renew or extend | IV | You may be asked to sign a contract with materially different terms and conditions than your original contract, pay the renewal fee, comply with any new training requirements and serve notice of intention to renew not less than twelve (12) months nor more than eighteen (18) months prior to the expiration of the agreement. You may be required to sign a general release in favor of us. |
| d. Termination by franchisee | None. | The Franchise Agreement does not provide for this. But you may seek to terminate on any grounds available to you at law. |
| e. Termination by franchisor | Not Applicable | Not Applicable |
| without cause | ||
| f. Termination by franchisor with | XVII | We can terminate only if you commit any one |
| cause | of several listed violations | |
| g. "Cause" defined—curable defaults | XVII | 30 days for operations defaults, 30 days for monetary defaults, 24 hours for health code violations, as set forth in the Franchise Agreement |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 41–43)
What This Means (2025 FDD)
According to Buns On Fire's 2025 Franchise Disclosure Document, a franchisee has 30 days to cure a monetary default. This means that if a franchisee fails to make required payments to Buns On Fire, they have a 30-day window to correct the issue and become current on their payments. If the franchisee rectifies the monetary default within this timeframe, Buns On Fire cannot terminate the franchise agreement on those grounds.
It is important for prospective Buns On Fire franchisees to understand the specific definition of "monetary default" as outlined in the franchise agreement. This definition will clarify what constitutes a payment failure and trigger the cure period. Franchisees should also be aware of the procedures for making payments and documenting that payments have been made to avoid any disputes regarding potential defaults.
Cure periods are a fairly standard practice in franchising, providing franchisees with an opportunity to correct certain breaches of the agreement before the franchisor can take drastic action like termination. However, the length of the cure period can vary among different franchise systems. The 30-day cure period for monetary defaults offered by Buns On Fire provides a reasonable timeframe for franchisees to address payment issues.
It is also important to note that the Buns On Fire franchise agreement differentiates between curable and non-curable defaults. Non-curable defaults, such as conviction of a felony or abandonment of the franchise, do not offer a cure period and can lead to immediate termination of the agreement.