What is the cure period for a Deck Medic franchisee's failure to maintain required insurance coverage?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
| d. | Termination by franchisee | 16.B. | You may terminate the Franchise Agreement if you are in |
|---|---|---|---|
| compliance with its terms, we are in material breach of the Franchise Agreement, and we fail to cure the material breach within 30 days of receiving written notice or, if the breach cannot be cured within 30 days, such period of time that is reasonable to cure the material breach. | |||
| e. | Termination by franchisor without cause | Not applicable | Not applicable. |
| f. | Termination by franchisor with "cause" | 16.A. | We can terminate if you are in default of the terms of the Franchise Agreement. |
| g. | "Cause" defined-curable defaults | 16.A.(3), 16.A.(4) | You have 10 days to cure a default where you fail to pay any fees and/or obligations due to us and/or to an affiliate of ours or if you fail to pay a supplier without, as determined by us, a legal justification, provided that the foregoing defaults were not intentionally and knowingly in violation of the Franchise Agreement. You will have 30 days to cure a default where you fail to: timely lease a location that we approve for your Deck Medic Business; timely develop and open your Deck Medic Business; operate your Deck Medic Business in accordance with the specifications, standards, and requirements set forth in our Manuals; develop or operate your Deck Medic Business in compliance with all federal, state, and local laws, rules, and regulations, unless, such violation poses a threat to public health or safety; maintain insurance coverage that we require; comply with our standards, systems or specifications as we may designate or as otherwise designated in the operations manual; fail to operate your Deck Medic Business in conformity with our System or otherwise violate the Franchise Agreement, except as to events of default that are not curable. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 34–39)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, a franchisee has 30 days to cure a default if they fail to maintain the insurance coverage that Deck Medic requires. This falls under the curable defaults as defined in the franchise agreement.
This 30-day cure period means that if Deck Medic discovers that a franchisee's insurance coverage is not in compliance with the franchise agreement, Deck Medic must provide the franchisee with written notice of the deficiency. The franchisee then has 30 days from the date of the notice to rectify the situation by obtaining the necessary insurance coverage. If the franchisee fails to obtain the required insurance within this timeframe, Deck Medic has grounds to terminate the franchise agreement.
It is important to note that repeated instances of curable defaults, even if cured within the allotted time, can lead to non-curable defaults and potential termination of the franchise agreement. Therefore, Deck Medic franchisees must prioritize maintaining the required insurance coverage to avoid any disruptions to their business operations and to remain in good standing with the franchisor.