Under what conditions related to non-payment can Crown Gold Exchange terminate the franchise agreement?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | Summary |
|---|---|---|
| or other agreement | ||
| g. “Cause” defined-- | Non-payment by you (10 days to cure); violate | |
| curable defaults | ||
| franchise agreement other than non-curable | ||
| default (30 days to cure). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 29–33)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, Crown Gold Exchange can terminate the franchise agreement if the franchisee fails to make payments. However, this is a curable default, meaning the franchisee has an opportunity to correct the issue.
Specifically, Crown Gold Exchange will allow a 10-day period for the franchisee to cure the non-payment. This means the franchisee has 10 days from the date of notice to make the overdue payment. If the franchisee makes the payment within this 10-day cure period, Crown Gold Exchange cannot terminate the franchise agreement on the grounds of non-payment.
If the franchisee does not cure the non-payment within the 10-day period, Crown Gold Exchange has grounds to terminate the franchise agreement. It is important for prospective franchisees to understand these terms and ensure they have sufficient financial resources to meet their payment obligations to avoid potential termination of their franchise agreement.