What is Crown Gold Franchising's obligation to cure a default by a Crown Gold Exchange franchisee?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.3 Crown Gold Franchising's Right to Cure. If Franchisee breaches or defaults under any provision of this Agreement, Crown Gold Franchising may (but has no obligation to) take any action to cure the default on behalf of Franchisee, without any liability to Franchisee.
Franchisee shall reimburse Crown Gold Franchising for its costs and expenses (including the allocation of any internal costs) for such action, plus 10% as an administrative fee.
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, Crown Gold Franchising has no obligation to cure a default by a franchisee. The FDD states that Crown Gold Franchising may take action to cure a default on behalf of the franchisee, but it is not required to do so.
If Crown Gold Franchising chooses to cure a default, it will not be liable to the franchisee for taking such action. The franchisee is responsible for reimbursing Crown Gold Franchising for all costs and expenses incurred in curing the default, including internal costs, plus an additional 10% administrative fee.
This clause in the franchise agreement protects Crown Gold Franchising from being obligated to assist franchisees who are in default. However, it also allows Crown Gold Franchising the option to step in and protect its brand and system by curing the default, while ensuring they are compensated for their efforts and expenses.