Where are 'cause' defined as curable defaults in the Christian Brothers Automotive Franchise Agreement?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
as disabled when he or she is not cleared by a licensed physician to perform the normal duties of a Principal Operator for a period
- DEFAULT AND TERMINATION.
in excess of ninety (90) consecutive days.
14.01 Termination After Right to Cure. Except for the defaults described in Section 14.02, if
Franchisee fails to perform any of its obligations set forth in this Agreement, such failure
shall constitute a material breach of this Agreement, in which event Franchisor shall notify
Franchisee that it is in default. If Franchisee cures such default within fifteen (15) days
after receiving Franchisor's notice, such default shall be cured. If Franchisee fails to cure
such default within the fifteen (15) day period, then Franchisor shall have the option to
immediately terminate this Agreement without any further notice to Franchisee. In the
event a second default occurs within any eighteen (18) month period, Franchisee will have
the same opportunity to cure, and Franchisor shall have the same option to immediately
terminate this Agreement if the Franchisee fails to cure such default within the fifteen (15)
day period after receiving Franchisor's notice. If a third default occurs during any eighteen
(18) month period, notwithstanding that prior defaults have been cured, this Agreement
may be terminated immediately by Franchisor upon giving notice to Franchisee.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 59–62)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, curable defaults are defined within Section 14.01 of the agreement. If a franchisee fails to meet any of their obligations, Christian Brothers Automotive will issue a notice of default. The franchisee then has fifteen days to correct the issue. If the franchisee successfully addresses the default within this period, the breach is considered resolved.
However, if the franchisee fails to correct the default within the 15-day timeframe, Christian Brothers Automotive has the option to immediately terminate the agreement without further notice. A second default within an 18-month period provides the franchisee another chance to cure within 15 days, but a third default within the same 18-month period, regardless of whether the previous defaults were cured, allows Christian Brothers Automotive to terminate the agreement immediately upon notice.
It's important to note that if a default is inherently incurable, Christian Brothers Automotive can terminate the agreement immediately. This section outlines the process and conditions under which a franchisee can remedy a breach of contract, highlighting the importance of adhering to the franchise agreement to avoid potential termination.