Are there any defaults under the Coffee News franchise agreement that can be cured?
Coffee_News Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTION IN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| g. "Cause" defined defaults | None, Exhibit A | There exists no provisions for |
| which can be cured. | defaults which may be cured. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 25–27)
What This Means (2025 FDD)
According to Coffee News's 2025 Franchise Disclosure Document, there are no provisions in the franchise agreement that allow a franchisee to cure a default. The FDD states explicitly that there are no defaults which may be cured. This means that any breach of the franchise agreement by the franchisee could lead to termination without an opportunity to correct the issue.
This is a significant point for potential franchisees to consider. Typically, many franchise agreements include a clause that allows franchisees a certain period (e.g., 30 days) to rectify a breach before the franchisor can terminate the agreement. The absence of such a clause in the Coffee News franchise agreement means that even a minor, easily fixable infraction could potentially result in the termination of the franchise.
Prospective franchisees should carefully review Section 13.1 and Exhibit A of the franchise agreement, as referenced in the table, to fully understand what constitutes a breach or default. They should also consider seeking legal counsel to discuss the implications of this provision and negotiate for the inclusion of a cure period, although there is no guarantee that Coffee News will agree to modify the standard agreement.