What is the process for curing a breach of the franchise agreement with Chocolate Fish Coffee?
Chocolate_Fish_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
(a) Subject to 10-Day Cure Period. Chocolate Fish Franchising may terminate this Agreement if Franchisee does not make any payment to Chocolate Fish Franchising when due, or if Franchisee does not have sufficient funds in its account when Chocolate Fish Franchising
attempts an electronic funds withdrawal, and Franchisee fails to cure such non-payment within 10 days after Chocolate Fish Franchising gives notice to Franchisee of such breach.
- (b) Subject to 30-Day Cure Period.
If Franchisee breaches this Agreement in any manner not described in subsection (a) or (c), and Franchisee fails to cure such breach to Chocolate Fish Franchising's satisfaction within 30 days after Chocolate Fish Franchising gives notice to Franchisee of such breach, then Chocolate Fish Franchising may terminate this Agreement.
- (c) Without Cure Period.
Chocolate Fish Franchising may terminate this Agreement by giving notice to Franchisee, without opportunity to cure, if any of the following occur:
(i) Franchisee misrepresented or omitted material facts when applying to be a franchisee, or breaches any representation in this Agreement;
(ii) Franchisee knowingly submits any false report or knowingly provides any other false information to Chocolate Fish Franchising;
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to the 2024 Chocolate Fish Coffee Franchise Disclosure Document, the process for curing a breach of the franchise agreement depends on the nature of the breach. If a franchisee fails to make any payment when due or lacks sufficient funds for an electronic funds withdrawal, Chocolate Fish Coffee may terminate the agreement if the franchisee does not cure the non-payment within 10 days after receiving notice of the breach.
For breaches not related to payment or those that allow for termination without a cure period, Chocolate Fish Coffee may terminate the agreement if the franchisee fails to cure the breach to Chocolate Fish Coffee's satisfaction within 30 days after receiving notice. This implies that for most breaches of the franchise agreement, a 30-day cure period is provided.
However, Chocolate Fish Coffee can terminate the agreement without any opportunity to cure under specific circumstances. These circumstances include misrepresentation or omission of material facts in the franchise application, knowingly submitting false reports or information to Chocolate Fish Coffee, or situations where the franchisee's actions could negatively impact the Chocolate Fish Coffee brand. Prospective franchisees should understand the specific conditions that trigger immediate termination, as these could have significant implications for their investment and business operations.