table_specific

What section of the Craters & Freighters Franchise Agreement defines 'cause' related to curable defaults?

Craters_Freighters Franchise · 2025 FDD

Answer 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.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTIONS (FDD pages 36–44)

What This Means (2025 FDD)

According to Craters & Freighters' 2025 Franchise Disclosure Document, the definition of 'cause' related to curable defaults is detailed in Section 19.2 of the Franchise Agreement. This section outlines specific defaults that a franchisee can rectify within a 30-day period to avoid termination of the agreement.

The curable defaults listed in Section 19.2 include non-payment of amounts owed to Craters & Freighters or its affiliates, failure to submit required reports or data, inaccurate reporting of Adjusted Gross Sales, and failure to operate a necessary warehouse on the premises. Additional curable defaults involve unresolved issues under the lease, offering unauthorized products or services, non-compliance with the Operations Manuals or System Standards, and failure to pay taxes related to the franchise operation.

Furthermore, Section 19.2 specifies that neglecting to obtain necessary licenses and permits, failing to secure required written approvals, and non-compliance with any other provision of the Franchise Agreement, Operations Manuals, or System Standards also constitute curable defaults. Franchisees should be aware of these provisions and ensure they take prompt corrective action within the given timeframe to maintain compliance and avoid potential termination of their franchise agreement with Craters & Freighters.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
All Craters_Freighters 2025 FAQs Ask FDD Ninja