Does the Craters & Freighters Franchise Agreement specify the method of payment for curing a default?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
| Item | Provision | Section in Franchise Agreement | Summary |
|---|---|---|---|
| g. | "Cause" defined – curable defaults | Section 19.2 | Curable Defaults: You have 30 days to cure |
| any of the following defaults: non-payment of | |||
| any amount due and owing to us or any | |||
| Affiliate of ours as required by us pursuant to | |||
| the Franchise Agreement, Operations Manuals, | |||
| or otherwise; failure or refusal to submit, when | |||
| due, any report or other data, information, or | |||
| supporting records relating to the Franchised | |||
| Business; failure or refusal to accurately report | |||
| the Adjusted Gross Sales of the Franchised | |||
| Business; failure or refusal to operate a | |||
| warehouse within the Premises necessary for | |||
| the operation of the Franchised Business; | |||
| uncured default under the Lease for the | |||
| Premises; offer or sale of any products or | |||
| services not authorized by us; failure or refusal | |||
| to comply with the Operations Manuals or, | |||
| more specifically, any of the System Standards; | |||
| failure or refusal to pay any taxes due in | |||
| connection with your operation of the | |||
| Franchised Business; failure or refusal to | |||
| obtain and/or maintain all applicable licenses | |||
| and permits relating to the operation of the | |||
| Franchised Business; failure or refusal to | |||
| obtain our written approval or consent when | |||
| required; or failure or refusal to comply with | |||
| any other provision of the Franchise | |||
| Agreement, Operations Manuals, or any | |||
| System Standard. |
h. "Cause" defined – non-curable Section 19.1 Non-Curable Defaults: failure or refusal to defaults open the Franchised Business within 90 days after execution of the Franchise Agreement;
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTIONS (FDD pages 36–44)
What This Means (2025 FDD)
The 2025 Craters & Freighters Franchise Disclosure Document (FDD) outlines the conditions under which a franchisee can cure a default, but it does not specify the method of payment required to do so. The FDD indicates that a franchisee typically has 30 days to cure certain defaults after receiving notice from Craters & Freighters. These curable defaults include non-payment of amounts owed to Craters & Freighters or its affiliates, failure to submit reports, inaccurate reporting of Adjusted Gross Sales, failure to operate a warehouse, uncured lease defaults, unauthorized sales, non-compliance with operations manuals or system standards, failure to pay taxes, failure to maintain licenses, failure to obtain required approvals, or non-compliance with any other provision of the Franchise Agreement or System Standards.
While the FDD lists various defaults that can be cured, it remains silent on the acceptable methods of payment for curing such defaults. This leaves franchisees potentially uncertain about how they can fulfill their obligations to resolve a default. For instance, it is unclear whether Craters & Freighters accepts personal checks, cashier's checks, wire transfers, or other forms of payment.
Prospective Craters & Freighters franchisees should seek clarification from the franchisor regarding the acceptable methods of payment for curing a default. Understanding the specific payment methods that Craters & Freighters accepts is crucial for franchisees to ensure they can promptly and effectively address any defaults and maintain compliance with the Franchise Agreement. This information is essential for sound financial planning and risk management in operating a Craters & Freighters franchise.