What is the cure period for Casiola if I fail to operate my business in conformity with the System?
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, if a franchisee fails to operate their Casiola business in conformity with the Casiola System, they generally have 30 days to cure the default. This cure period applies to various defaults, including failing to operate the business according to the specifications, standards, and requirements in Casiola's manuals. It also covers failures to comply with federal, state, and local laws, rules, and regulations, unless the violation poses a threat to public health or safety.
However, there are exceptions to this 30-day cure period. Certain defaults are considered non-curable, meaning the franchisee does not have an opportunity to correct the issue. These non-curable defaults include instances where the franchisee has committed three or more curable defaults, whether or not they were timely cured. Additionally, intentionally refusing to comply with the Franchise Agreement or operating the franchised business in violation of applicable laws in a way that creates a foreseeable threat to public health and safety are also considered non-curable defaults.
It is important for prospective Casiola franchisees to understand the specific circumstances under which a default can be cured and those under which it cannot. Failure to adhere to the cure periods or committing non-curable defaults can lead to termination of the franchise agreement. Franchisees should carefully review Item 17 of the Franchise Agreement and seek legal counsel to fully understand their rights and obligations regarding defaults and termination.