Is slandering or libeling Endless Summer Sweets a curable default?
Endless_Summer_Sweets Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise | Summary |
|---|---|---|
| or other agreement | ||
| 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-- | Non-payment by you (10 days to cure); violate | |
| curable defaults | ||
| franchise agreement other than non-curable | ||
| default (30 days to cure). | ||
| h. “Cause” defined--non- | FA: Misrepresentation when applying to be a | |
| curable defaults | ||
| franchisee; knowingly submitting false | ||
| information; bankruptcy; lose possession of | ||
| your location; violation of law; violation of | ||
| confidentiality; violation of non-compete; | ||
| violation of transfer restrictions; slander or | ||
| libel of us; refusal to cooperate with our | ||
| business inspection; cease operations for more | ||
| than 5 consecutive days; three defaults in 12 | ||
| months; cross-termination; | ||
| conviction of, or plea to a felony, or | ||
| commission or accusation of an act that is | ||
| reasonably likely to materially and unfavorably | ||
| affect our brand; any other breach of franchise | ||
| agreement which by its nature cannot be cured. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 30–34)
What This Means (2024 FDD)
According to Endless Summer Sweets's 2024 Franchise Disclosure Document, slandering or libeling Endless Summer Sweets is considered a non-curable default. This means that if a franchisee engages in such behavior, Endless Summer Sweets has the right to terminate the franchise agreement immediately without providing an opportunity for the franchisee to correct the action.
This policy has significant implications for prospective franchisees. It highlights the importance of maintaining a positive public image and avoiding any form of defamation against the Endless Summer Sweets brand. Franchisees must ensure that their communications, whether online, in person, or through other channels, do not include false or damaging statements about the company, its products, or its reputation.
The inclusion of slander or libel as a non-curable default is not uncommon in franchise agreements, as a brand's reputation is a critical asset. Any damage to that reputation can have severe financial consequences for both the franchisor and other franchisees in the system. Therefore, franchisors often take a strict stance against such behavior to protect the overall health and viability of the franchise network. Franchisees should be aware of this clause and take proactive steps to prevent any potential issues related to slander or libel.