Does Crepe De Licious have to provide a cure period for all defaults before terminating the franchise agreement?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
ers otherwise violate any such law, ordinance, or regulation; (n) you duplicate all or any portion of our System or make or cause a disclosure of the System; (o) you fail to follow any laws or regulations for products or prepare products which are not in accordance with the methods set forth by us; or (q) you fail or refuse to sell products designated by us.
- 16.02 Termination by Us with 10-Day Cure Period. If you fail or refuse to timely pay any amounts owed to us or any of our affiliates, or if you fail to obtain or maintain insurance as required by this Agreement, we may, at our option, terminate this Agreement by giving you 10 days' written notice of default. If you do not cure the default within this 10-day period, we may terminate this Agreement for good cause effective upon delivery of notice of termination to you.
- 16.03 Other Termination by Us. Except as provided in Sections 16.01 and 16.02, if you are in any other default under the terms of this Agreement, we, at our option, may terminate this Agreement by giving you 30 days' written notice of default. If you do not cure any the default within this 30-day period, we may terminate this Agreement for good cause effective upon delivery of notice of termination to you.
- 16.04 Additional Remedies. We may deny you the benefits of the System for any default under this Agreement and discontinue System benefits to you for the duration of the default, including, but not limited to, suspension of your access to any intranet we may develop and/or suspension of any listing or web page for your Restaurant, Kiosk, or Food Truck on our website. We may institute proceedings to collect amounts due under this Agreement without first issuing a default or termination notice.
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Crepe De Licious's 2025 Franchise Disclosure Document, the franchisor is not required to provide an opportunity to cure all defaults before terminating the franchise agreement.
Specifically, if a franchisee fails to pay amounts owed to Crepe De Licious or its affiliates or fails to maintain required insurance, Crepe De Licious may terminate the agreement with only 10 days' written notice to cure the default. For other defaults, Crepe De Licious will provide 30 days' written notice to cure. However, there are certain events of default that allow Crepe De Licious to terminate the agreement immediately without any opportunity to cure. These include the termination of a Franchise Agreement for any Franchised Restaurant operated by the Area Developer or a Manager being convicted of a felony.
This means that as a Crepe De Licious franchisee, you could face immediate termination without a chance to fix the problem if certain critical defaults occur, such as a felony conviction. It is important to understand what constitutes a default under the agreement and the specific cure periods, or lack thereof, associated with each type of default. Paying attention to insurance requirements and payments to the franchisor is critical, as failure to adhere to these may result in a shorter cure period before termination.