Where in the Desi District franchise agreement can I find the definition of 'cause' related to curable defaults?
Desi_District Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| e. Termination by | Not Applicable | |
| franchisor without cause | ||
| f. Termination by franchisor with cause | FA: § 14.2 MUDA: § 4 | We may terminate your agreement for cause, subject to any applicable notice and cure opportunity. If you sign a Multi-Unit Development Agreement, termination of your MUDA does not give us the right to terminate your franchise agreement. However, if your franchise agreement is terminated, we have the right to terminate your MUDA. |
| g. "Cause" defined curable defaults | FA: § 14.2 MUDA: none | Non-payment by you (10 days to cure); violate franchise agreement other than non-curable default (30 days to cure); operate in a manner dangerous to health or safety (48 hours to cure). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 44–48)
What This Means (2024 FDD)
According to Desi District's 2024 Franchise Disclosure Document, the definition of 'cause' related to curable defaults can be found in Section 14.2 of the Franchise Agreement (FA). The document specifies certain actions that constitute cause for termination if not cured within a given timeframe.
Specifically, 'cause' includes non-payment, which provides a 10-day cure period. It also includes violating the franchise agreement, excluding non-curable defaults, which allows for a 30-day cure period. Furthermore, operating the Desi District business in a manner that endangers health or safety is considered cause, with a shorter cure period of 48 hours.
For a prospective Desi District franchisee, understanding these definitions and cure periods is crucial. It clarifies the franchisee's responsibilities and the steps they can take to rectify a default situation, potentially avoiding termination of the franchise agreement. It is important to note that the Multi-Unit Development Agreement (MUDA) does not contain a definition of 'cause' related to curable defaults.