Does the 10-day cure period for non-payment apply to all financial obligations owed by a Casiola franchisee's affiliate?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
- (b) Franchisee and/or Franchisee's affiliate fails, refuses, and/or is unable to pay and/or satisfy
any payment, fee, financial obligation, charge, and/or monetary obligation payable to Franchisor and/or Franchisor's affiliates pursuant to this Agreement and/or any other agreement between or among Franchisor, Franchisor's affiliate, Franchisee and/or Franchisee's affiliate; and/or
(c) Franchisee fails or refuses, at any time, and, without legal justification as may be determined by Franchisor in Franchisor's Reasonable Business Judgment, to pay any third party supplier or vendor for any goods, products, supplies, equipment, materials and/or any other items used by, benefitting, and/or intended to benefit the Franchised Business.
The foregoing events of default set forth in this Article 16.A.(3) shall exclude events of default that are otherwise governed by and/or constitute events of default under Article 16.A.(1) or Article 16.A.(2). In the event of any inconsistency or conflict between the provisions of this Article 16.A.(3) with Article 16.A.(1), Article 16.A.(1) shall take precedence and govern. In the event of any inconsistency or conflict between the provisions of this Article 16.A.(3) with Article 16.A.(2), Article 16.A.(2) shall take precedence and govern.
- (4) Defaults and Automatic Termination After 30 Day Cure Period Franchisee shall be in default of this Agreement and, this Agreement shall be terminated, upon the occurrence of any one or more of the following actions, inactions, omissions, events, and/or circumstances, unless, Franchisee timely cures, to the satisfaction of Franchisor, such default/action, inaction, omission, event, and/or circumstance within 30 calendar days of Franchisor's written notice:
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
Based on the 2024 Casiola Franchise Disclosure Document, a franchisee and/or their affiliate's failure or refusal to pay any financial obligation to Casiola and/or its affiliates is considered an event of default. However, the document specifies a 30-day cure period for certain defaults, not a 10-day cure period.
Specifically, if a Casiola franchisee and/or their affiliate fails to pay any payment, fee, financial obligation, charge, and/or monetary obligation payable to Casiola and/or Casiola's affiliates, it constitutes an event of default under Article 16.A.(3). However, this section excludes defaults covered under Article 16.A.(1) or Article 16.A.(2), and in case of conflict, those articles take precedence.
Casiola franchisees should note that the cure period mentioned in Article 16.A.(4) is 30 calendar days from written notice by Casiola, not 10 days. This 30-day period allows the franchisee to rectify the default to Casiola's satisfaction. It is important for prospective franchisees to understand the specific conditions and timelines for curing defaults to avoid termination of the franchise agreement.