What is the cure period for non-monetary defaults under the Chicken Guy Development Agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (13) Developer fails or refuses to comply with any other provision of this Agreement or any requirement of the System and does not correct the failure or refusal within 30 days (10 days for monetary defaults) after receiving written notice of default.
Except for monetary defaults, if the default cannot be corrected within 30 days, Developer shall have such additional time to correct the default as reasonably required (not to exceed 90 days) provided that Developer begins taking the actions necessary to correct the default during the 30-day cure period and diligently and in good faith pursues those actions to completion.
Developer will be in default under this Section 13.A.(13) for any failure to materially comply with any of the requirements imposed by this Agreement or otherwise in writing, or to carry out the terms of this Agreement in good faith.
If Developer has received 2 or more notices of default pursuant to this Section 13.A.(13) within the previous 12 months, Chicken Guy shall be entitled to send Developer a notice of termination upon Developer's next default under this Section 13.A.(13) in that 12-month period without providing Developer an opportunity to remedy that default.
Source: Item 23 — RECEIPTS (FDD pages 50–286)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, a developer has 30 days to correct a failure or refusal to comply with any provision of the Development Agreement, after receiving written notice of default, except for monetary defaults. If the default is not correctable within 30 days, the developer has additional time, not exceeding 90 days, to correct the default. To qualify for this extension, the developer must begin taking action to correct the default during the initial 30-day cure period and diligently pursue those actions to completion.
This means that if a Chicken Guy developer fails to meet certain obligations under the Development Agreement (excluding monetary ones), they will receive a written notice and have 30 days to fix the issue. If the problem requires more than 30 days to resolve, Chicken Guy allows for an extension of up to 90 days, provided the developer starts working on the solution within the initial 30-day period and continues to work diligently until it is resolved.
It's important to note that if a developer receives two or more default notices within a 12-month period, Chicken Guy can send a termination notice for the next default without providing an opportunity to remedy it. This highlights the importance of addressing any defaults promptly and effectively to avoid potential termination of the Development Agreement. This clause encourages proactive compliance and diligent efforts to rectify any issues that may arise during the course of the agreement.