What is the cure period for defaults under the Burneys Sweets More franchise agreement?
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.
Such defaults shall include, without limitation, the occurrence of any of the following events:
(i) Franchisee fails to construct or remodel or to commence operating the Shop in accordance with this Agreement, Franchisee fails to provide prior to opening a commitment letter from a financial institution representing sufficient working capital within the range identified in Item 7 of the Franchise Disclosure Document provided to Franchisee, or Franchisee fails to obtain the Premises within the required timeline.
(ii) Franchisee fails, refuses, or neglects to promptly pay any monies owing to Franchisor, its affiliates or the Brand Fund when due or to submit the financial or other information required under this Agreement.
(iii) Any Owner of five percent (5%) or less of Franchisee makes a transfer of such interest in violation of this Agreement; provided, however, that Franchisee's right to cure such a default shall be conditioned upon Franchisee immediately notifying Franchisor of the improper transfer and taking all actions necessary to either (a) obtain Franchisor's approval thereof, or (b) if approval is not desired or the transfer or transferee is not approved by Franchisor, to re-acquire the interest so transferred.
(iv) A threat or danger to public or customer health or safety results from the construction, maintenance, or operation of the Shop.
(v) Franchisee or any of its Owners, employees, or contractors misuses or makes any unauthorized use of the System or the Marks.
(vi) Franchisee, an Operations Manager, or any Owner(s) commits acts of abuse, abuses customers, uses employees who do not meet Franchisor's then-current
standards and training requirements, uses illegal drugs or abuses alcohol, or permits unlawful activities at Franchisee's business.
- (vii) Franchisee maintains false books or records, or submits any false reports to Franchisor.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Burneys Sweets More Franchise Disclosure Document, a franchisee typically has fifteen (15) days to cure a default after receiving notice. However, this cure period is contingent upon certain factors. If the default is not curable within that time, if substantial and continuing action to cure has not been initiated, Burneys Sweets More may terminate the agreement.
Examples of defaults that could trigger termination include failing to construct or remodel the shop as agreed, not providing a commitment letter for sufficient working capital, failing to obtain the premises within the required timeline, or not promptly paying monies owed to Burneys Sweets More. Other defaults include misuse of the Burneys Sweets More system or marks, acts of abuse towards customers or employees, or maintaining false books or records.
It is important to note that the cure period and the ability to cure a default can be conditional. For instance, if an owner transfers a small percentage of their ownership in violation of the agreement, the franchisee's right to cure is dependent on immediately notifying Burneys Sweets More and taking action to either obtain approval for the transfer or reacquire the interest if approval is not granted or desired.