What constitutes a 'default' that would trigger the cure period for a Gokhale Method franchisee?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
- 15.3. Notice With Opportunity to Cure. Except as otherwise provided in Sections 15.1 and 15.2 of this Agreement, upon any other default by you, we shall give you written notice of such default and an opportunity to cure such default within thirty (30) days of your receipt of such notice. We shall have the right to terminate this Agreement immediately upon notice to you if you fail to cure any default to our satisfaction, and provide proof thereof, within the thirty (30) day period. If applicable law requires a longer cure period, such period shall apply to our notice.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, a franchisee can be in default of their agreement, which can lead to termination. Gokhale Method distinguishes between defaults that trigger automatic termination without notice or opportunity to cure, defaults that allow for termination with notice but no opportunity to cure, and defaults that provide an opportunity to cure.
For defaults that allow for a cure period, Gokhale Method will provide written notice, and the franchisee has thirty days to resolve the issue. If the franchisee fails to adequately address the default within this period, Gokhale Method has the right to terminate the agreement immediately. If applicable law requires a longer cure period, that longer period will apply.
Examples of defaults that trigger a cure period include any default not specifically listed under automatic termination or termination without opportunity to cure. These include more general breaches of the agreement. Prospective franchisees should carefully review Sections 15.1 and 15.2 of the franchise agreement, as referenced in the FDD, to fully understand their obligations and the potential consequences of failing to meet them.