If a Carbones Pizzeria franchisee does not submit reports, how long do they have to cure this default?
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 correct the failure to submit required reports. This falls under the category of 'curable defaults,' meaning the franchisee has a specific timeframe to rectify the issue before Carbones Pizzeria can terminate the agreement. Other curable defaults include nonpayment of fees and sanitation problems.
This 30-day cure period provides a Carbones Pizzeria franchisee with an opportunity to address the issue and maintain their franchise agreement. It is important for franchisees to understand what constitutes a curable default and the steps required to remedy such situations. Failing to submit reports can lead to termination if not corrected within the given timeframe.
In contrast, the FDD also outlines 'non-curable defaults,' such as abandonment of the business, trademark misuse, or conviction of an offense directly related to the restaurant business, which would allow Carbones Pizzeria to terminate the agreement immediately without a cure period. Understanding the distinction between curable and non-curable defaults is crucial for a franchisee to avoid potential termination of their franchise agreement.