If a Chesters franchisee has a curable default, how many days do they generally have to cure it?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in franchise or other agreement | Summary | |
|---|---|---|---|
| g. | "Cause" defined – curable defaults | 19 of Agreement | You generally have 20 days to cure all defaults that by their nature can be cured. |
| h. | "Cause" defined – non-curable defaults | 11, 18, and 19 of Agreement | Unapproved transfers and third failed in- Restaurant inspection are not curable defaults. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 35–38)
What This Means (2025 FDD)
According to Chesters's 2025 Franchise Disclosure Document, a franchisee generally has 20 days to cure defaults that can be cured. This is outlined in Item 17, which discusses renewal, termination, transfer, and dispute resolution. The specific section addressing curable defaults refers to Section 19 of the franchise agreement.
It's important to note that not all defaults are curable. The FDD specifies that unapproved transfers and a third failed in-restaurant inspection are considered non-curable defaults. This means that if a franchisee engages in these actions, Chesters can terminate the agreement without providing an opportunity to correct the issue.
Prospective franchisees should carefully review Section 19 of the franchise agreement to understand what constitutes a curable default and the specific actions required to remedy such a situation within the given 20-day period. Understanding the distinction between curable and non-curable defaults is crucial for maintaining a good standing with Chesters and avoiding potential termination of the franchise agreement.