What is the cure period for failing to pay monies owed to City Wide?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.2.3 If Franchisee fails, refuses, or neglects to pay any monies owing to CITY WIDE when due, or to submit the financial information or other reports required under this Agreement, and if such default is not cured within thirty (30) days after the giving of Notice of such default; or
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, if a franchisee fails, refuses, or neglects to pay any monies owed to City Wide when due, they have a 30-day period to cure the default after receiving notice. This means that City Wide must provide written notice to the franchisee regarding the overdue payment. The franchisee then has 30 days from the date of the notice to correct the payment deficiency.
This cure period is a standard practice in franchising, allowing franchisees an opportunity to rectify payment issues before City Wide takes further action, such as termination of the franchise agreement. It is important for prospective franchisees to understand this clause, as consistent failure to pay on time can lead to the termination of their franchise agreement.
It is also important to note that this 30-day cure period applies specifically to the failure to pay monies owed to City Wide. Other types of defaults under the franchise agreement may have different cure periods, or in some cases, no cure period at all, leading to immediate termination. Therefore, franchisees must be diligent in meeting all their obligations under the agreement to avoid potential defaults and subsequent termination.