What constitutes 'good cause' for Casiola to terminate a franchise agreement?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
- C.
A provision that permits us to terminate a franchise before the expiration of this term except for good cause.
Good cause shall include your failure to comply with any lawful provision of the Franchise Agreement and to cure the failure after being given written notice of the failure and a reasonable opportunity, which in no event need be more than 30 days, to cure the failure.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, the definition of 'good cause' for termination is specified within the Michigan FDD Amendment. It states that Casiola can terminate a franchise agreement before its expiration only for 'good cause'.
'Good cause' is defined as the franchisee's failure to comply with any lawful provision of the Franchise Agreement. Furthermore, Casiola must provide the franchisee with written notice of the failure and a reasonable opportunity to correct it.
However, the opportunity to cure the failure does not need to be more than 30 days. This means that if a franchisee violates a term of the agreement, Casiola must notify them and give them a chance to fix the issue, but that chance can be as short as 30 days. If the franchisee does not remedy the situation within that timeframe, Casiola has grounds for termination.