What is the timeframe City Wide gives a franchisee to cure a default before termination?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will be deemed to be in default under this Agreement and CITY WIDE may elect to terminate this Agreement and all rights granted under this Agreement if within thirty (30) days after CITY WIDE sends Franchisee written notification setting out the nature of the default ("Notice to Cure"), or within any such period set forth in this Agreement or permissible by law, Franchisee does not correct the default to CITY WIDE's satisfaction:
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to the 2025 City Wide Franchise Disclosure Document, after City Wide sends a franchisee written notification of a default, the franchisee typically has thirty (30) days to correct the default to City Wide's satisfaction. This notification is referred to as a "Notice to Cure." However, the cure period can vary if a different timeframe is specified elsewhere in the Franchise Agreement or is permissible by law.
This means that a City Wide franchisee needs to act quickly upon receiving a Notice to Cure to avoid termination of the franchise agreement. The franchisee must address the default within the specified timeframe, ensuring that the correction is satisfactory to City Wide. Failure to do so can result in City Wide terminating the agreement and all rights granted to the franchisee.
It is important for prospective City Wide franchisees to understand the default and termination provisions outlined in the franchise agreement, as well as any applicable state laws that may affect the cure period. Franchisees should also maintain open communication with City Wide to ensure they understand the requirements for correcting any default and to potentially negotiate a reasonable resolution.