What is the cure period for non-payment by a Chocolate Bash franchisee?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | Summary |
|---|---|---|
| or other agreement | ||
| c. Requirements for | FA: § 3.2 | To renew, you must give advance notice to us; |
| franchisee to renew or | ||
| extend | ||
| MUDA: none | be in compliance with all contractual obligations to us and third parties; renovate to our then-current standards; sign then-current form of franchise agreement and related documents (including personal guaranty); sign general release (unless prohibited by applicable law). | |
| d. Termination by | If we violate a material provision of the | |
| franchisee | franchise agreement and fail to cure or to make substantial progress toward curing the violation within 30 days after notice from you. If you sign a MUDA, you may terminate it at any time. | |
| e. Termination by | ||
| franchisor without cause | ||
| f. Termination by | We may terminate your agreement for cause, | |
| franchisor with cause | subject to any applicable notice and cure opportunity. If you sign a Multi-Unit Development Agreement, termination of your MUDA does not give us the right to terminate your franchise agreement. However, if your franchise agreement is terminated, we have the right to terminate your MUDA. | |
| g. “Cause” defined-- | Non-payment by you (10 days to cure); violate | |
| curable defaults | franchise agreement other than non-curable default (30 days to cure). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, a franchisee has a 10-day cure period for non-payment. This means that if a franchisee fails to make a payment, Chocolate Bash must give them 10 days to correct the non-payment before terminating the franchise agreement. This cure period is specifically for non-payment and differs from other violations of the franchise agreement, which may have a longer cure period.
It is important to note that this 10-day cure period is a contractual right, and Chocolate Bash is obligated to provide this opportunity to the franchisee. Failure to provide the cure period could be a breach of contract by Chocolate Bash. The cure period allows the franchisee to rectify the situation and maintain their franchise.
Franchisees should be aware of this cure period and ensure they take immediate action to address any non-payment issues within the specified timeframe to avoid potential termination of their franchise agreement. This is a relatively short cure period compared to other defaults, so franchisees must be diligent in managing their finances and addressing any payment issues promptly.