What constitutes 'substantial and continuing action' to cure a default by Burneys Sweets More?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
If the defaults specified in such notice are not cured within the fifteen (15) day period, if substantial and continuing action to cure has not been initiated, or if the default is not curable Franchisor may, at its option, terminate this Agreement upon written notice to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, if a franchisee receives a notice of default, they have fifteen days to cure the default. If the default is not curable within that time, Burneys Sweets More may terminate the agreement. However, if the franchisee initiates 'substantial and continuing action' to cure the default within the fifteen-day period, Burneys Sweets More may not terminate the agreement immediately.
The FDD does not define what constitutes 'substantial and continuing action'. This lack of a clear definition creates ambiguity and potential risk for the franchisee. What Burneys Sweets More considers 'substantial and continuing action' is subjective and could be interpreted differently in different situations.
As a prospective franchisee, it is crucial to seek clarification from Burneys Sweets More on what specific actions would be considered 'substantial and continuing' to cure a default. Understanding this will help you to protect your investment and avoid potential termination of the franchise agreement. You should request examples or specific criteria that Burneys Sweets More uses to evaluate whether a franchisee is taking adequate steps to resolve a default situation.