What is the cure period for non-payment to Crave Cookies Franchising before termination of the agreement?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Subject to 10-Day Cure Period. Crave Cookies Franchising may terminate this Agreement if Franchisee does not make any payment to Crave Cookies Franchising when due, or if Franchisee does not have sufficient funds in its account when Crave Cookies Franchising attempts an electronic funds withdrawal, and Franchisee fails to cure such non-payment within 10 days after Crave Cookies Franchising gives notice to Franchisee of such breach.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, if a franchisee fails to make payments when due, or lacks sufficient funds for electronic withdrawals, they have a 10-day cure period to resolve the non-payment after receiving notice from Crave Cookies. This means that if a franchisee misses a payment, Crave Cookies must provide written notice of the breach, giving the franchisee ten days to rectify the situation. If the franchisee cures the non-payment within this timeframe, the franchise agreement will not be terminated on those grounds.
This cure period is a standard practice in franchising, providing franchisees with an opportunity to correct payment errors or omissions. However, it's crucial for franchisees to understand that failure to cure within the specified period can lead to termination of the franchise agreement. Franchisees should maintain diligent financial management practices to avoid non-payment issues and ensure they have sufficient funds available for scheduled withdrawals.
The 10-day cure period applies specifically to non-payment situations. Other breaches of the franchise agreement may have different cure periods, as outlined in other sections of the FDD. Franchisees should familiarize themselves with all default and termination provisions to understand their rights and obligations under the agreement. Note that Crave Cookies Franchising can terminate the agreement without opportunity to cure under certain circumstances.