What is the cure period for nonpayment of fees by a Carbones Pizzeria franchisee?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| Franchise Agreement | ||
| a. Length of the Franchise term | Section 2 | 10 years from date of signing the Franchise Agreement |
| b. Renewal or extension of the term | Section 2 (See Note 2) | One 10 year term |
| c. Requirements for franchisee to renew or extend | Section 2 | Sign new agreement (which may contain materially different terms and conditions than your original Franchise Agreement), pay renewal fee, update your Restaurant to meet our then-current requirements for new restaurants |
| d. Termination by franchisee | None | Not applicable |
| e. Termination by franchisor without | None | Not applicable |
| cause | ||
| f. Termination by franchisor with cause | Section 15 | We may terminate only if you do one of the things described in Section 15 |
| g. "Cause" defined – curable defaults | Sections 15(e) through 15(f) | You have 30 days to cure nonpayment of fees, sanitation problems, non submission of reports and any other default not listed in Section 15 |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 24–26)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, a franchisee has 30 days to cure a default of nonpayment of fees. This information is detailed within Item 17, which outlines the terms for renewal, termination, transfer, and dispute resolution related to the franchise agreement. Specifically, Section 15(e) through 15(f) of the Franchise Agreement define curable defaults.
This 30-day cure period means that if a Carbones Pizzeria franchisee fails to pay required fees, they have a one-month window to rectify the situation before Carbones Pizzeria can terminate the franchise agreement. This provides a grace period for franchisees facing temporary financial difficulties or administrative oversights. It is important for prospective franchisees to understand this timeframe and ensure they have systems in place to manage their finances and meet payment deadlines.
In addition to nonpayment of fees, the 30-day cure period also applies to sanitation problems and non-submission of reports, as well as any other default not listed in Section 15. However, certain defaults are considered non-curable, such as abandonment, trademark misuse, and conviction of an offense directly related to the Restaurant business, which can lead to immediate termination. Therefore, franchisees must be diligent in adhering to all aspects of the franchise agreement to avoid potential termination.