What are some non-curable defaults under the Central Bark Doggy Day Care MUFA?
Central_Bark_Doggy_Day_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise agreement, multi-unit franchise agreement, or other agreement | Summary |
|---|---|---|
| 10 mile radius of any CENTRAL BARK facility (same restrictions apply after transfer) | ||
| s. Modification of the agreement | FA - XXV. MUFA – 10.12 | No modifications except in writing, but We may change Operating Manual No modifications except in writing |
| t. Integration/merger clause | FA - XXV. MUFA – 10.12 | Only the terms of the Franchise Agreement are binding (subject to state law). Any other promises might not be enforceable. However, nothing in the Franchise Agreement or any related agreement is intended to disclaim our representations made in the Disclosure Document. Only the terms of the MUFA are binding (subject to state law). Any other promises might not be enforceable. However, nothing in the MUFA or any related agreement is intended to disclaim our representations made in the Disclosure Document. |
| u. Dispute resolution by arbitration or mediation | FA - XXX. and MUFA – 10.16 | We and you must arbitrate all disputes at a location within 50 miles of our or, as applicable, its successor’s or assign’s then- current principal place of business (currently Oakland Park, Florida) (subject to state law) |
| v. Choice of forum | FA - XXVIII. and MUFA -10.8 | Subject to arbitration requirement, litigation generally must be in courts nearest our or, as applicable, its successor’s or assign’s then-current principal place of business (currently Oakland Park, Florida) (subject to state law) |
| w. Choice of law | FA - XXVII. and MUFA – 10.7 | Except for U.S. Federal Arbitration Act and other federal laws in the U.S., laws of the State of Florida (subject to state law) |
| Provision | Section in franchise agreement, multi-unit franchise agreement, or other agreement | Summary |
| MUFA – N/A | We may not terminate the MUFA without cause. | |
| f. Termination by franchisor with cause | FA - XV. | We may terminate only if you or your owners commit one of several violations. We may not terminate the Franchise Agreement based on the termination of the MUFA. |
| MUFA – Article 9 | We may terminate only if you or your owners commit one of several violations. We may terminate the MUFA based on the termination of a Franchise Agreement. | |
| g. "Cause" defined – curable | FA – XV. | Under Franchise Agreement, you have 30 days to cure |
| defaults | operational defaults and other defaults not listed in (h) below | |
| MUFA – | Under MUFA, you have 30 days to cure operational defaults and | |
| 9.1 | other defaults not listed in (h) below | |
| h. "Cause" defined – non curable defaults | FA - XV. | Non-curable defaults under Franchise Agreement include: bankruptcy; assignment for the benefit of creditors, abandonment; failure to complete training; engaging in conduct likely to adversely affect reputation or impair goodwill of Marks; conviction of a felony; arrested or under the influence of drugs or alcohol while supervising the premises of the Franchised Business; unapproved transfer of control of Franchised Business; material misrepresentations or omissions; failure to select site and sign lease for Franchised Business within 120 days; failure to open for business within 300 days; failure to maintain possession of Franchised Business; unauthorized transfer of Franchised Business; unauthorized use or disclosure of the Operating Manual; understating Gross Sales; monetary defaults; repeated violations (even if cured); failure to comply with other agreements with us or our affiliates and do not correct such failure within the applicable cure period, if any; and failure to pay any third-party, including the lessor of the Location, any amounts owed in connection with the CENTRAL BARK facility when due. |
| MUFA – 9.1(b) | Non-curable defaults under MUFA include: assignment or attempted assignment without our consent; failure to satisfy the Development Obligation within each Development Period; failure to pay us or our affiliates any amounts when due, which failure is not cured within ten days of notice to you; opening a CENTRAL BARK facility except as permitted under the MUFA; breach of non-competition or confidentiality obligations; repeated violations (even if cured); bankruptcy or assignment for the benefit of creditors; failure to comply with other agreements with us or our affiliates and do not correct such failure within the applicable cure period, if any. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 38–42)
What This Means (2025 FDD)
According to Central Bark Doggy Day Care's 2025 Franchise Disclosure Document, there are specific defaults under the Multi-Unit Franchise Agreement (MUFA) that cannot be cured, meaning Central Bark Doggy Day Care can terminate the agreement immediately upon their occurrence. These non-curable defaults include: assignment or attempted assignment of the MUFA without Central Bark Doggy Day Care's consent, failure to meet the Development Obligation within each Development Period, and failure to pay amounts owed to Central Bark Doggy Day Care or its affiliates, which is not cured within ten days of notice.
Additional non-curable defaults under the MUFA consist of: opening a Central Bark Doggy Day Care facility except as permitted under the MUFA, breaching non-competition or confidentiality obligations, and repeated violations of the MUFA, even if these violations were previously cured. Furthermore, non-curable defaults include bankruptcy or assignment for the benefit of creditors, and failure to comply with other agreements with Central Bark Doggy Day Care or its affiliates without correcting such failure within the applicable cure period.
These stipulations are important for prospective multi-unit franchisees to consider, as any of these defaults could lead to immediate termination of the MUFA. The inclusion of 'repeated violations (even if cured)' as a non-curable default is particularly noteworthy, as it means that even if a franchisee corrects a violation, repeated occurrences can still result in termination. The ten-day cure period for failure to pay owed amounts is also relatively short, highlighting the importance of maintaining timely payments to Central Bark Doggy Day Care and its affiliates.
It is also important to note the difference between defaults under the standard Franchise Agreement versus the MUFA. For example, under the Franchise Agreement, non-curable defaults include more specific instances such as being arrested or under the influence of drugs or alcohol while supervising the premises, or understating gross sales. Prospective franchisees should carefully review all potential non-curable defaults for both agreement types to fully understand their obligations and the potential consequences of non-compliance.