Is a guarantor for Central Bark Doggy Day Care entitled to notice of default?
Central_Bark_Doggy_Day_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
(ii) Your failure to satisfy the Development Obligation within the Development Periods set forth herein.
- (iii) Your or your Affiliates failure to pay any amounts due to us or our Affiliates (including, but not limited to, the Initial Franchise Fee or Royalty Fees) in a timely manner as required by this Agreement or any Franchise Agreement signed by you or your Affiliates, which failure you do not cure within ten (10) days after we deliver written notice of such failure to you.
Source: Item 1 — Franchisee shall have paid all Royalty Fees, advertising fund contributions, LAC contributions, amounts owed for purchases by Franchisee from Franchisor, or Franchisor's affiliates, and all other amounts owed to Franchisor, Franchisor's affiliates, and third-party creditors, and shall have submitted to Franchisor all required reports and statements; (FDD pages 106–233)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Central Bark Doggy Day Care specifies certain default scenarios where the franchisee receives written notice and a period to cure the default. However, the FDD does not explicitly state whether a guarantor is entitled to receive a notice of default.
Specifically, the franchise agreement outlines instances where failure to comply with its provisions results in default. For example, if the franchisee fails to pay amounts due to Central Bark Doggy Day Care or its affiliates, they have ten days after written notice to cure the failure. Similarly, a 30-day cure period after written notice is provided for failure to comply with other provisions of the agreement. These cure periods are designed to give the franchisee an opportunity to rectify the situation and avoid termination of the agreement.
While the FDD details notice and cure provisions for the franchisee, it remains silent on whether these same notices are extended to any guarantor of the franchise agreement. This absence of explicit mention raises a question for potential franchisees who have a guarantor involved in their agreement.
Therefore, it is important that prospective Central Bark Doggy Day Care franchisees clarify with the franchisor whether a guarantor is entitled to receive copies of default notices and what rights a guarantor has in the event of a default. Understanding the guarantor's rights and responsibilities is crucial for all parties involved in the franchise agreement.