What is the definition of 'cure' in the context of a Crown Gold Exchange franchisee addressing a breach of the agreement?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
ress toward curing the violation within 30 days after receiving written notice from Franchisee detailing the alleged default. Termination by Franchisee is effective 10 days after Crown Gold Franchising receives written notice of termination.
14.2 Termination by Crown Gold Franchising.
- (a) Subject to 10-Day Cure Period. Crown Gold Franchising may terminate this Agreement if Franchisee does not make any payment to Crown Gold Franchising when due, or if Franchisee does not have sufficient funds in its account when Crown Gold Franchising attempts an electronic funds withdrawal, and Franchisee fails to cure such non-payment within 10 days after Crown Gold Franchising gives notice to Franchisee of such breach.
- (b) Subject to 30-Day Cure Period. If Franchisee breaches this Agreement in any manner not described in subsection (a) or (c), and Franchisee fails to cure such breach to Crown Gold Franchising's satisfaction within 30 days after Crown Gold Franchising gives notice to Franchisee of such breach, then Crown Gold Franchising may terminate this Agreement.
- (c) Without Cure Period. Crown Gold Franchising may terminate this Agreement by giving notice to Franchisee, without opportunity to cure, if any of the following occur:
- (i) Franchisee misrepresented or omitted material facts when applying to be a franchisee, or breaches any representation in this Agreement;
- (ii) Franchisee knowingly submits any false report or knowingly provides any other false information to Crown Gold Franchising;
Source: Item 22 — CONTRACTS (FDD pages 38–39)
What This Means (2024 FDD)
According to the 2024 Crown Gold Exchange Franchise Disclosure Document, 'cure' refers to the actions a franchisee must take to correct a breach of the franchise agreement and avoid termination. The specific requirements and timeframes for curing a breach vary depending on the nature of the violation.
Crown Gold Exchange distinguishes between breaches that can be cured and those that cannot. For certain breaches, such as failure to make payments when due or insufficient funds for electronic withdrawals, the franchisee has a 10-day cure period after receiving notice from Crown Gold Exchange. For other breaches not specifically mentioned elsewhere, a 30-day cure period is granted following notification. However, some violations, such as misrepresentation during the application process or submitting false reports, do not offer an opportunity to cure, leading to immediate termination.
Crown Gold Exchange also has the right to cure a franchisee's default on behalf of the franchisee, but is not obligated to do so. If Crown Gold Exchange chooses to cure a default, the franchisee is responsible for reimbursing Crown Gold Exchange for all costs and expenses incurred, including a 10% administrative fee. Understanding the specific cure periods and conditions is crucial for a prospective franchisee to protect their investment and maintain a good standing with Crown Gold Exchange.