What is the cure period for Casiola if I fail to pay a supplier?
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 pay a supplier, they have 10 days to cure the default, provided that the failure to pay was not intentionally and knowingly in violation of the Franchise Agreement and there is no legal justification for the non-payment, as determined by Casiola. This means that if a Casiola franchisee misses a payment to a supplier, Casiola can issue a notice of default, giving the franchisee 10 days to rectify the situation by making the outstanding payment.
It is important to note that this cure period applies only if the failure to pay the supplier was not a deliberate and conscious violation of the franchise agreement. If Casiola determines that the franchisee intentionally and knowingly failed to pay the supplier, or if there is no legitimate legal reason for the non-payment, the cure period may not apply, potentially leading to more immediate consequences, including termination of the franchise agreement.
This condition highlights the importance of maintaining good relationships with suppliers and ensuring timely payments. Franchisees should also be aware of the potential for Casiola to determine whether a legal justification exists for non-payment, which could be a subjective assessment. Therefore, it is crucial to communicate proactively with both Casiola and suppliers to address any payment issues and avoid potential defaults.