What section of the Crawl Space Ninja franchise agreement defines 'cause' for non-curable defaults?

According to the 2024 Crawl Space Ninja Franchise Disclosure Document, the definition of 'cause' for non-curable defaults is outlined in Sections 17.1 and 17.2 of the Franchise Agreement.

Specifically, the Franchise Agreement will automatically terminate without notice if certain defaults occur. These include situations such as insolvency, bankruptcy, a written admission of inability to pay debts, receivership, levy, composition with creditors, an unsatisfied final judgment for more than 30 days, or a foreclosure proceeding that is not dismissed within 30 days. These are considered non-curable defaults, meaning Crawl Space Ninja can immediately terminate the agreement without giving the franchisee an opportunity to correct the issue.

Crawl Space Ninja also has the right to terminate the Franchise Agreement with notice to the franchisee for a wide range of other defaults. These include failing to open the franchised business on time, falsifying reports, ceasing operations for 5 or more days (with an exception for vehicle repair/replacement), failing to restore and reopen the business within 120 days after a casualty, failing to comply with laws, defaulting on a lease, understating gross revenue multiple times, failing to meet insurance and indemnification requirements, attempting an unauthorized transfer, misrepresenting facts in the franchise application, being convicted of a crime that could damage the brand's reputation, receiving an adverse judgment related to fraud or similar claims, concealing revenues, creating a public health threat, refusing inspections, unauthorized use of trademarks or confidential information, violating non-competition covenants, repeated defaults, insufficient funds for checks, failing to meet minimum performance requirements or Google review ratings, or terminating the Franchise Agreement without cause.

These termination clauses are typical in franchise agreements, as they protect the franchisor's brand and system standards. However, prospective Crawl Space Ninja franchisees should carefully review Sections 17.1 and 17.2 to fully understand the circumstances that could lead to termination, especially those considered non-curable, as these carry significant risk.