Does the cure period for a Burros Fries franchisee default change based on applicable law?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
Except as otherwise provided in this Agreement, upon any material default by Franchisee under this Agreement or any other agreement between Franchisee and us or our affiliates, we may terminate this Agreement only by giving written notice of termination stating the nature of such default to Franchisee at least thirty (30) days prior to the effective date of termination; provided, however, that Franchisee may avoid termination by immediately initiating a remedy to cure such default, curing it to our satisfaction, and by promptly providing proof thereof to us within the thirty (30) day period. If any such default is not cured within the specified time, or such longer period as applicable law may require, this Agreement shall terminate without further notice to Franchisee effective immediately upon the expiration of the thirty (30) day period or such longer period as applicable law may require. We may terminate this Agreement by written notice to Franchisee for Franchisee's material breach of this Agreement or of any otheragreement between Franchisee and us or our affiliates, if Franchisee fails to cure the breach within thirty (30) days after written notice is delivered to Franchisee, provided that this Agreement does not prescribe a different cure period for such breach. Any breach relating to any violation of health or safety laws must be cured within seventy-two (72) hours of notice or such shorter period prescribed by law. Any default for failure to pay monetary amounts must be cured within five (5) days or shorter period as is provided by law.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the cure period for a franchisee's default can indeed change based on applicable law. Generally, Burros Fries offers a 30-day cure period upon written notice of termination for a material default. However, this period may be extended if applicable law requires a longer timeframe.
Additionally, the standard cure periods can be shortened depending on the nature of the default and legal requirements. For breaches relating to health or safety laws, the cure period is 72 hours from notice or an even shorter period if mandated by law. Similarly, defaults involving the failure to pay monetary amounts must be resolved within five days, unless a shorter period is prescribed by law.
This means that a Burros Fries franchisee needs to be aware of both the franchise agreement's default terms and any state or local laws that might modify those terms. It is the franchisee's responsibility to understand and comply with all applicable laws and regulations, and failure to do so within the legally mandated cure period could result in termination of the franchise agreement.