What is the reference in the Casiola Franchise Agreement that defines 'cause' related to curable defaults?
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.
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, the definition of 'cause' related to curable defaults is specified in sections 16.A.(3) and 16.A.(4) of the Franchise Agreement. These sections outline the conditions under which Casiola can terminate the franchise agreement if the franchisee fails to meet certain obligations and has the opportunity to correct those failures within a given timeframe.
Specifically, a franchisee has 10 days to cure a default if they fail to pay any fees or obligations to Casiola or its affiliates, or if they fail to pay a supplier without legal justification, unless these defaults were intentionally and knowingly in violation of the Franchise Agreement. A longer cure period of 30 days is provided for defaults related to securing an approved location, developing and opening the Casiola business, operating the business according to Casiola's standards, complying with laws (unless the violation threatens public health or safety), maintaining required insurance, adhering to Casiola's standards and systems, and generally operating the business in conformity with the Casiola system.
It is important to note that these cure periods and definitions of 'cause' are critical for a prospective franchisee to understand. Failure to cure a default within the specified time can lead to termination of the franchise agreement. The distinction between curable and non-curable defaults is also significant, as non-curable defaults, as defined elsewhere in the FDD, provide no opportunity for the franchisee to rectify the situation before termination.