Is there an exception to the cure period for violating laws, rules, and regulations for Casiola?
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, a franchisee typically has 30 days to cure a default related to compliance with laws, rules, and regulations. However, there is an exception to this cure period.
Specifically, if the violation of federal, state, or local laws, rules, and regulations poses a threat to public health or safety, Casiola can terminate the franchise agreement without providing an opportunity to cure the default. This means that if a Casiola franchisee's non-compliance creates an immediate risk to the well-being of the public, Casiola does not have to wait 30 days before terminating the agreement.
Additionally, the FDD states that if a franchisee intentionally, knowingly, or negligently operates the franchised business in violation of applicable laws, rules, and regulations and, in doing so, creates a foreseeable, imminent, and/or immediate threat to the health and safety of others, this is a default that cannot be cured. This means Casiola can terminate the franchise agreement immediately.