What is the cure period for a Carvel franchisee to comply with all Laws after receiving a notice of default?

According to Carvel's 2025 Franchise Disclosure Document, a franchisee typically has 24 hours to cure a default related to complying fully with all Laws after receiving a notice of default. However, this is conditional. The franchisee can contest the violation or legality of a Law in a court or other appropriate forum. If the franchisee promptly resorts to such a forum, the 24-hour cure period may not apply.

This short cure period underscores the importance of franchisees maintaining strict compliance with all applicable laws and regulations. Failure to comply within this timeframe can lead to termination of the franchise agreement, unless the franchisee is actively contesting the legality of the law in question.

It is important for prospective Carvel franchisees to understand the implications of this clause. They should ensure they have systems in place to monitor and maintain compliance with all relevant laws to avoid facing a default notice and potential termination. If a franchisee believes a law is being unfairly applied or is invalid, they must act quickly to initiate legal proceedings to protect their interests.