Under what conditions can Fly To Fit Franchise cure a franchisee's default?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
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 franchisees have the opportunity to cure a default under specific conditions. If a franchisee fails to make a payment to Fly To Fit when due, including instances of insufficient funds for electronic withdrawals, the franchisee has 10 days after receiving notice from Fly To Fit to cure the non-payment.
For breaches of the franchise agreement not related to payment defaults or situations allowing for termination without a cure period, the franchisee has 30 days after receiving notice from Fly To Fit to resolve the breach to Fly To Fit's satisfaction. This implies that the franchisee must take corrective action that Fly To Fit deems adequate within that timeframe.
However, there are certain situations where Fly To Fit can terminate the agreement without offering any opportunity to cure the default. These include instances where the franchisee misrepresented or omitted material facts during the application process or breaches any representation made in the agreement, or if the franchisee knowingly submits false reports or information to Fly To Fit. These stipulations highlight the importance of transparency and honesty in the franchisee's dealings with Fly To Fit, as any misrepresentation or false information could lead to immediate termination of the franchise agreement.