How does the Dq Treat company provide notice of default when a 24-hour cure period applies?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
- (B) Twenty-Four Hours to Cure. If a default under this agreement materially impairs the goodwill associated with any of the Trademarks or the operation, maintenance or construction of the Restaurant results in a threat or danger to the public health or safety (for example, violating any of Company's zero tolerance policies or food safety requirements), then Licensee will have 24 hours after Company provides notice of the default to cure the default.
Company has the right to require Licensee to close the Restaurant immediately upon notice and keep it closed until such time as the default is cured.
If the default is not cured within 24 hours, or Licensee fails or refuses to close the Restaurant upon notice from Company, the termination will be effective immediately upon notice of termination.
Notwithstanding any notice provisions under this agreement, notices under this section are deemed received when, as shown in Company's records, actual notice was given to the Controlling Owner, a Principal Owner, the Designated Manager, or the person designated to receive notices under section 15.3(B), whether delivered personally, by phone, fax, email, or reputable overnight service.
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to the 2025 Dq Treat Franchise Disclosure Document, if a franchisee default materially impairs the goodwill associated with the trademarks or the restaurant's operation, maintenance, or construction results in a threat or danger to public health or safety, the franchisee has 24 hours after Dq Treat provides notice of the default to cure it. Dq Treat has the right to require the franchisee to close the restaurant immediately upon notice and keep it closed until the default is cured.
If the default is not cured within 24 hours, or the franchisee fails or refuses to close the restaurant upon notice from Dq Treat, the termination will be effective immediately upon notice of termination. Notices under this section are deemed received when actual notice was given to the Controlling Owner, a Principal Owner, the Designated Manager, or the person designated to receive notices, whether delivered personally, by phone, fax, email, or reputable overnight service, as shown in Dq Treat's records.
This means that Dq Treat can use various methods to provide notice, including personal delivery, phone, fax, email, or overnight service. The notice is considered received when Dq Treat's records show that one of the specified individuals received it. This immediate notification and short cure period highlight the critical importance Dq Treat places on protecting its brand's goodwill and ensuring public safety. Franchisees must be prepared to act swiftly to address any defaults that fall under these categories to avoid immediate termination and closure of their restaurant.