How many days does a Crave franchisee have to cure a default after receiving a written notice of termination?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as provided in Sections 17.1.2 and 17.1.3 of this Agreement, upon any default by you which is susceptible of being cured, we may terminate this Agreement by giving written notice of termination stating the nature of such default to you at least thirty (30) days prior to the effective date of termination. However, you may avoid termination by immediately initiating a remedy to cure such default and curing it
to our reasonable or making a bona fide attempt to cure to our reasonable satisfaction within the thirty (30) day period and by promptly providing proof thereof to us. If any such default is not cured within the specified time, or such longer period as applicable law may require, this Agreement shall terminate without further notice to you effective immediately upon the expiration of the thirty (30) day period or such longer period as applicable law may require. Defaults which are susceptible of cure hereunder may include, but are not limited to, the following illustrative events:
- 17.2.1 If you fail to comply with any of the requirements imposed by this Agreement, as it may from time to time be amended or reasonably be supplemented by us, or fail to carry out the terms of this Agreement in good faith.
- 17.2.2 If you fail to maintain or observe any of the standards, specifications or procedures prescribed by us in this Agreement or otherwise in writing.
- 17.2.3 If you fail, refuse, or neglect to obtain our prior written approval or consent as required by this Agreement.
- 17.2.4 If any license or permit you are required to maintain for the operation of the Franchised Business is suspended.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, a franchisee typically has 30 days to cure a default after receiving written notice of termination. Specifically, if Crave determines that a franchisee is in default of the franchise agreement, and the default is something that can be fixed, Crave can issue a written notice of termination. This notice must be given at least 30 days before the termination becomes effective.
To avoid termination, the franchisee must begin to fix the default immediately and continue to make a genuine effort to fully resolve the issue to Crave's satisfaction within that 30-day period. The franchisee also needs to provide proof to Crave that they are taking these steps. If the franchisee does not fix the default within the 30-day period, the franchise agreement will terminate automatically without any further notice.
However, the cure period can vary depending on the nature of the default. For instance, failure to pay monies owed to Crave or its affiliates results in a cure period of only five days following notice. Similarly, if a franchisee fails to maintain required insurance policies, they have just ten days to correct the issue after receiving notice. If a franchisee misuses Crave's trademarks, they have only 24 hours to cure the default. Prospective franchisees should carefully review the franchise agreement to understand the specific cure periods associated with different types of defaults, as some defaults have no cure period at all.