factual

For Buona, how long does the franchisee have to cure a default after receiving written notice?

Buona Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 16.3 Five-Day Cure Period.

Except as provided in Sections 16.1, 16.2 and 16.3 of this Agreement, Franchisor shall have the right to terminate this Agreement if Franchisee commits any of the following breaches and fails to cure the same within five (5) days following Franchisor's written

notice to Franchisee:

  • 16.7 Statutory Cure Period.

If a default is curable under this Agreement, and the applicable law in the state in which the Franchised Business is located requires a longer cure period than that specified in this Agreement, the longer period will apply.

  • 16.8 Right to Operate Upon Default**.** In addition to Franchisor' right to terminate this Agreement and not in lieu of such right or any other rights, in the event that Franchisee has not cured a default under this Agreement within fourteen (14) days after receipt of a written notice of default, Franchisor may, at its option, enter upon the Premises and exercise complete authority with respect to the operation of the Franchised Business until such time as Franchisor determines that the default has been cured and that there is compliance with the requirements of this Agreement.

without affording Franchisee any opportunity to cure the same effective upon receipt of notice from Franchisor to Franchisee, upon occurrence of any of the following events:

  • (a) Franchisee fails to obtain site approval for the Franchised Business within six (6) months of the date of the execution of this Agreement for a location requiring ground up construction and within four (4) months of the date of the execution of this Agreement for an existing location as required by Section 6.2; or Franchisee fails to open the Franchised Business with Franchisor's approval as required in Section 6.5 within twelve (12) months of Franchisor's written approval of the site for the Franchised Business for a ground up construction or within six (6) months of Franchisor's written approval of the site for an existing location.

However, Franchisor may in its sole discretion extend this period for matters not within control of Franchisee or for other mutually agreed upon grounds;

  • (b) Franchisee at any time ceases to operate the Franchised Business for fortyeight (48) hours or more or otherwise abandons the Franchised Business, or loses the right to possession of the premises of the Franchised Business, or causes its lease for the premises of the Franchised Business to be terminated, or otherwise forfeits the right to do or transact business in the jurisdiction where the Franchised Business is located.

Source: Item 23 — RECEIPTS (FDD pages 78–356)

What This Means (2025 FDD)

According to Buona's 2025 Franchise Disclosure Document, the cure period for defaults varies. For some breaches, a franchisee has five days to cure the default after receiving written notice from Buona. However, if the law in the state where the franchised business is located requires a longer cure period than specified in the agreement, the longer statutory period will apply. In the event a franchisee does not cure a default within fourteen days after receiving written notice, Buona has the option to enter the premises and take over operations until the default is resolved.

There are also circumstances where Buona can terminate the agreement without any opportunity to cure the default. These include failing to obtain site approval within a specified timeframe or ceasing to operate the franchised business for 48 hours or more.

It is important for a prospective Buona franchisee to understand the specific conditions that trigger a default, the applicable cure periods, and the potential consequences of failing to cure a default in a timely manner. Franchisees should also be aware of their rights under state law, which may provide for longer cure periods than those specified in the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.