What is the dependency between curing a breach and the termination of the Cinch I.T. Franchise Agreement?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
As a result, You acknowledge and agree that the occurrence of any of the following events, each or any of which shall be considered a Material Breach default of this Agreement, constitutes reasonable grounds for termination of this Franchise Agreement by Us; provided, however that You shall be given the opportunity, within fifteen (15) days after receipt of written notice of such Material Breach, to cure the default by promptly providing proof of cure to Us.
Notwithstanding the foregoing, if the breach is curable but is of a nature which cannot reasonably be cured within such fifteen (15) day period and You have commenced and are continuing to make good faith efforts to cure the breach, You shall be given an additional reasonable period of time to cure the default, and this Agreement shall not terminate.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, if a franchisee commits a material breach of the Franchise Agreement, Cinch I.T. may provide written notice of the breach. The franchisee then has a 15-day period to cure the default by providing proof of the cure to Cinch I.T.
However, if the breach is curable but cannot reasonably be cured within the initial 15-day period, and the franchisee has commenced and is continuing to make good faith efforts to cure the breach, Cinch I.T. will grant an additional reasonable period of time to cure the default. During this extended period, the Franchise Agreement will not be terminated.
In summary, termination of the Cinch I.T. Franchise Agreement due to a material breach is dependent on the franchisee's ability and effort to cure the breach within the specified time frames. If the franchisee successfully cures the breach, the agreement will not be terminated. If the breach is not curable or the franchisee fails to make good faith efforts to cure it, Cinch I.T. has grounds for termination.