Which sections of the Carbones Pizzeria Franchise Agreement define 'cause' for termination, specifically curable defaults?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary |
|---|---|---|
| Franchise Agreement | ||
| 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 Carbones Pizzeria's 2025 Franchise Disclosure Document, Section 15 of the Franchise Agreement outlines the conditions under which Carbones Pizzeria may terminate the franchise agreement with cause. Specifically, Sections 15(e) through 15(f) define 'cause' related to curable defaults.
These sections specify that a franchisee has 30 days to correct certain defaults to avoid termination. These curable defaults include nonpayment of fees, sanitation problems, and non-submission of required reports. This 30-day cure period provides an opportunity for the franchisee to rectify the issue and maintain the franchise agreement.
It is important for a prospective Carbones Pizzeria franchisee to carefully review Section 15(e) through 15(f) of the Franchise Agreement to fully understand what constitutes a curable default and the specific steps required to remedy such situations within the given timeframe. Understanding these provisions is crucial for maintaining a good standing with Carbones Pizzeria and avoiding potential termination of the franchise agreement.