How many days does a Chocolate Bash franchisee have to cure a non-payment default?
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 to remedy a non-payment default. This means that if a franchisee fails to make a payment to Chocolate Bash as required by the franchise agreement, Chocolate Bash can issue a notice of default. The franchisee then has 10 days from the date of the notice to make the overdue payment and resolve the default.
Failure to cure the non-payment default within this 10-day period can lead to termination of the franchise agreement by Chocolate Bash. Termination would mean the franchisee loses the right to operate the Chocolate Bash business and would likely be subject to additional penalties and obligations as outlined in the franchise agreement.
It is important for prospective Chocolate Bash franchisees to understand the implications of failing to meet their financial obligations and the importance of the cure period. Franchisees should ensure they have sufficient financial resources and systems in place to manage payments and avoid defaults, as well as understand the termination terms outlined in the franchise agreement.