factual

What is the cure period for a C12 Group franchisee's default after receiving notice from the franchisor?

C12_Group Franchise · 2025 FDD

Answer from 2025 FDD Document

Unless stated otherwise in this Agreement, and subject to state law, Franchisee shall have thirty (30) days after receiving notice of default from Franchisor in which to cure any default arising from Franchisee's failure to perform its obligations under this Agreement.

If Franchisee fails to cure any default within thirty (30) days after receiving notice from Franchisor, Franchisor may terminate this Agreement upon notice to Franchisee.

Source: Item 22 — CONTRACTS (FDD page 46)

What This Means (2025 FDD)

According to the 2025 C12 Group Franchise Disclosure Document, a franchisee typically has 30 days to cure a default after receiving notice from C12 Group. This means that if a franchisee fails to meet their obligations under the franchise agreement, they have a one-month period to correct the issue and avoid potential termination of the agreement. This cure period is subject to state laws, which may provide different requirements.

However, the franchise agreement also stipulates certain situations where C12 Group can terminate the agreement immediately without providing an opportunity to cure. These situations include criminal convictions, abandonment of the franchised business, unapproved transfers of franchise responsibility, bankruptcy, or unrepentant behavior that harms the C12 Group community. These conditions allow C12 Group to act swiftly in cases of severe misconduct or business failure.

It's important to note that C12 Group retains the right to address breaches of the agreement through alternative measures if the franchisee does not satisfactorily cure the default within the given cure period. These measures can include redefining the franchise territory or scope, or ultimately terminating the agreement. This provides C12 Group with flexibility in handling breaches, but also introduces some uncertainty for the franchisee, as the consequences of a breach may vary.

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.