What is the cure period for a Deck Medic franchisee's failure to timely lease an approved location?
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 related to failing to timely lease a location approved by Deck Medic for their business. This falls under the conditions where Deck Medic can terminate the franchise agreement with cause.
This 30-day cure period means that if a Deck Medic franchisee does not secure a lease for an approved location in a timely manner, Deck Medic must provide written notice of the default. The franchisee then has 30 days from the date of the notice to rectify the situation by securing the lease. If the franchisee fails to do so within this timeframe, Deck Medic has grounds to terminate the franchise agreement.
It is important to note that this cure period applies specifically to the failure to timely lease an approved location. Other types of defaults, such as failure to pay fees, may have different cure periods, as outlined in the FDD. Additionally, certain defaults are considered non-curable, meaning that Deck Medic can terminate the agreement immediately without providing an opportunity to cure.
Prospective Deck Medic franchisees should carefully review Item 17 of the Franchise Disclosure Document to understand all the conditions under which the franchise agreement can be terminated and the applicable cure periods for various types of defaults. Understanding these provisions is crucial for maintaining a healthy franchisor-franchisee relationship and avoiding potential termination of the franchise agreement.