Does Fly To Fit Franchise have an obligation to cure a default by the franchisee?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
ss toward curing the violation within 30 days after receiving written notice from Franchisee detailing the alleged default. Termination by Franchisee is effective 10 days after Fly To Fit Franchise receives written notice of termination.
14.2 Termination by Fly To Fit Franchise.
- (a) Subject to 10-Day Cure Period. Fly To Fit Franchise may terminate this Agreement if Franchisee does not make any payment to Fly To Fit Franchise when due, or if Franchisee does not have sufficient funds in its account when Fly To Fit Franchise attempts an electronic funds withdrawal, and Franchisee fails to cure such non-payment within 10 days after Fly To Fit Franchise gives notice to Franchisee of such breach.
- (b) Subject to 30-Day Cure Period. If Franchisee breaches this Agreement in any manner not described in subsection (a) or (c), and Franchisee fails to cure such breach to Fly To Fit Franchise's satisfaction within 30 days after Fly To Fit Franchise gives notice to Franchisee of such breach, then Fly To Fit Franchise may terminate this Agreement.
- (c) Without Cure Period. Fly To Fit Franchise may terminate this Agreement by giving notice to Franchisee, without opportunity to cure, if any of the following occur:
- (i) Franchisee misrepresented or omitted material facts when applying to be a franchisee, or breaches any representation in this Agreement;
- (ii) Franchisee knowingly submits any false report or knowingly provides any other false information to Fly To Fit Franchise;
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, Fly To Fit Franchise does not have an obligation to cure a default by the franchisee. However, the agreement outlines specific circumstances under which Fly To Fit may terminate the agreement based on the franchisee's failure to cure a breach.
Specifically, if the franchisee fails to make payments when due or lacks sufficient funds for electronic withdrawals, Fly To Fit may terminate the agreement if the franchisee does not cure the non-payment within 10 days after receiving notice of the breach. For other breaches not related to payment, Fly To Fit can terminate the agreement if the franchisee does not resolve the breach to Fly To Fit's satisfaction within 30 days after receiving notice.
However, there are certain situations where Fly To Fit can terminate the agreement without offering the franchisee an opportunity to cure the default. These include instances where the franchisee misrepresented information during the application process, knowingly submits false reports, receives two or more default notices within a 12-month period and commits another breach, is charged with or convicted of a felony, or commits an act that could unfavorably affect the Fly To Fit brand. These stipulations highlight the importance of maintaining transparency and compliance with the franchise agreement to avoid immediate termination without a chance to rectify the issue.