According to the Casiola franchise agreement, what constitutes a 'cause' for default?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
| v. Choice of forum | 18.G. | All mediation, arbitration and, if applicable, litigation proceedings | |---|---|---| | | | must be conducted in, or closest to, State court of general | | | | jurisdiction that is within or closest to Orange County, Florida or, | | | | if appropriate, the United States District Court nearest to our | | | | corporate headquarters at the time such action is filed. This | | | | provision is subject to applicable state law. | | w. Choice of law | 18.F. | Florida law will govern. However, this provision is subject to state | | | | law and as otherwise disclosed in Exhibit I to this Disclosure | | | | Document. |
| g. | "Cause" defined-curable defaults | 16.A.(3), 16.A.(4) | You have 10 days to cure a default where you fail to pay any fees and/or obligations due to us and/or to an affiliate of ours or if you fail to pay a supplier without, as determined by us, a legal justification, provided that the foregoing defaults were not intentionally and knowingly in violation of the Franchise Agreement. You will have 30 days to cure a default where you fail to: timely lease a location that we approve for your Casiola Business; timely develop and open your Casiola Business; operate your Casiola Business in accordance with the specifications, standards, and requirements set forth in our Manuals; develop or operate your Casiola Business in compliance with all federal, state, and local laws, rules, and regulations, unless, such violation poses a threat to public health or safety; maintain insurance coverage that we require; comply with our standards, systems or specifications as we may designate or as otherwise designated in the operations manual; fail to operate your Casiola Business in conformity with our System or otherwise violate the Franchise Agreement, except as to events of default that are not curable. |
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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 35–39)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, 'cause' for default is divided into curable and non-curable defaults.
Curable defaults include failing to pay fees or obligations to Casiola or its affiliates, or failing to pay a supplier without legal justification, provided these defaults weren't intentional violations of the Franchise Agreement. Franchisees have 10 days to cure these defaults. Other curable defaults, which franchisees have 30 days to cure, involve failing to timely lease an approved location, develop and open the Casiola business, operate according to Casiola's standards, comply with laws (unless the violation threatens public health or safety), maintain required insurance, adhere to Casiola's standards, or generally violate the Franchise Agreement, excluding non-curable defaults.
Non-curable defaults include repeated curable defaults (three or more), intentional refusal to comply with the Franchise Agreement or Casiola's standards, intentionally or negligently operating the business in violation of laws that threaten public safety, abandoning the business, making intentional misrepresentations to Casiola, falsifying records, unauthorized transfer of the business, disclosing confidential information, engaging in dishonest conduct impacting Casiola's system, breaching another agreement with Casiola, failing to complete training, failing to protect confidential information, misusing licensed marks, insolvency, transferring assets for the benefit of creditors, bankruptcy, levy of execution against the business, unsatisfied final judgment, dissolution, or a foreclosure lawsuit against the business's equipment.