What is the cure period for a non-payment breach for a Desi District franchise?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
(a) Subject to 10-Day Cure Period. Desi District Franchise Group may terminate this Agreement if Franchisee does not make any payment to Desi District Franchise Group when due, or if Franchisee does not have sufficient funds in its account when Desi District Franchise Group attempts an electronic funds withdrawal, and Franchisee fails to cure such non-payment within 10 days after Desi District Franchise Group gives notice to Franchisee of such breach.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, if a franchisee fails to make a payment when due or lacks sufficient funds for an electronic withdrawal, they have a 10-day cure period to resolve the non-payment after receiving notice from Desi District. This means the franchisee has 10 days to correct the payment issue to avoid termination of the franchise agreement.
This 10-day cure period is specifically for non-payment breaches. Other types of breaches, as outlined in the franchise agreement, may have different cure periods or no cure period at all. For instance, other breaches typically have a 30-day cure period, while certain severe violations can lead to immediate termination without any opportunity to cure the breach.
It is important for prospective Desi District franchisees to understand the specific terms of the franchise agreement regarding defaults and termination. Paying close attention to payment deadlines and maintaining sufficient funds in the designated account are crucial to avoid non-payment breaches and potential termination of the franchise agreement. Franchisees should also be aware of other actions that could lead to a breach of contract and the corresponding cure periods or lack thereof.