Under what conditions can Chocolate Fish Coffee Franchising cure a franchisee's default?
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;
Source: Item 23 — RECEIPTS (FDD pages 41–119)
What This Means (2024 FDD)
According to Chocolate Fish Coffee's 2024 Franchise Disclosure Document, a franchisee's ability to cure a default depends on the nature of the breach. If a franchisee fails to make payments when due, or lacks sufficient funds for electronic withdrawals, they have 10 days after receiving notice from Chocolate Fish Coffee to cure the non-payment.
For breaches not related to payment or those that allow no cure period, Chocolate Fish Coffee allows a 30-day cure period. If a franchisee breaches the agreement in any manner not described in the non-payment clause or the clause that allows no cure period, the franchisee has 30 days after receiving notice from Chocolate Fish Coffee to resolve the breach to Chocolate Fish Coffee's satisfaction.
However, certain defaults cannot be cured. Chocolate Fish Coffee can terminate the agreement immediately, without any opportunity to cure, if the franchisee misrepresented or omitted material facts during the application process, knowingly submits false reports or information, endangers public safety, fails to maintain insurance, transfers the franchise without approval, abandons the business, is convicted of a crime, or engages in conduct that could negatively impact the Chocolate Fish Coffee brand. These stipulations highlight the importance of transparency, operational integrity, and adherence to brand standards for Chocolate Fish Coffee franchisees.