Where in the Chocolate Bash Multi-Unit Development Agreement can I find information about non-curable defaults?
Chocolate_Bash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | Summary |
|---|---|---|
| h. “Cause” defined--non- | FA: § 14.2 | FA: Misrepresentation when applying to be a |
| curable defaults | ||
| MUDA: § 4 | franchisee; knowingly submitting false information; bankruptcy; lose possession of your location; violation of law; violation of confidentiality; violation of non-compete; violation of transfer restrictions; slander or libel of us; refusal to cooperate with our business inspection; cease operations for more than 5 consecutive days; three defaults in 12 months; cross-termination; conviction of a felony, or accusation of an act that is reasonably likely to materially and unfavorably affect our brand; any other breach of franchise agreement which by its nature cannot be cured. MUDA: failure to meet development schedule; violation of franchise agreement or other agreement which gives us the right to terminate it. |
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, Item 17 details renewal, termination, transfer, and dispute resolution, including information about non-curable defaults within the Multi-Unit Development Agreement (MUDA).
The table provided in Item 17 outlines the sections in both the Franchise Agreement (FA) and the MUDA that define non-curable defaults. Specifically, non-curable defaults pertaining to the MUDA are addressed in Section 4. These defaults include failure to meet the development schedule and any violation of the franchise agreement or other agreements that give Chocolate Bash the right to terminate it.
For a prospective Chocolate Bash multi-unit franchisee, understanding these non-curable defaults is crucial. Unlike curable defaults, which allow a period to rectify the issue, non-curable defaults can lead to immediate termination of the MUDA. This could have significant implications for the franchisee's investment and development plans. Therefore, carefully reviewing Section 4 of the MUDA is essential to fully grasp the circumstances that could lead to termination without an opportunity to cure the default.