What constitutes 'good cause' for Bw Premier Collection to terminate a franchise agreement?
Bw_Premier_Collection Franchise · 2025 FDDAnswer from 2025 FDD Document
- c. Either Party may cancel this Agreement upon thirty (30) days' notice with cause. Prior to such notice of cancellation, the Party alleging "cause" shall provide the other Party written notice of the "cause" and, if the breach is capable of being cured, allow for a fifteen (15) day cure period. For purposes of this Agreement, "cause" shall be defined as a Party's breach of a material term of this Agreement (e.g., if the
Source: Item 23 — Receipts (FDD pages 54–203)
What This Means (2025 FDD)
According to the 2025 Bw Premier Collection FDD, 'cause' for termination is defined as a party's breach of a material term of the agreement. If one party alleges 'cause', they must provide written notice to the other party, and if the breach can be fixed, they must allow a 15-day period to correct the issue. This applies generally to the franchise agreement, but specific state laws may modify this definition.
For franchisees in Michigan, the FDD states that 'good cause' includes failure to comply with any lawful provision of the franchise agreement, provided the franchisee is given written notice and a reasonable opportunity to cure the failure, which need not be more than 30 days.
In Virginia, the FDD notes that it is unlawful for a franchisor to cancel a franchise without reasonable cause, according to the Virginia Retail Franchising Act. If any grounds for default or termination stated in the franchise agreement do not constitute 'reasonable cause' as defined by Virginia law, that provision may not be enforceable. Therefore, the definition of 'good cause' can vary based on the location of the franchise due to differing state laws, potentially offering more protection to franchisees in certain states.