For curable defaults, how many days does a Gokhale Method franchisee have to cure the default?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
| PROVISION | SECTIONIN FRANCHISE AGREEMENT | SUMMARY |
|---|---|---|
| g.“Cause”defined–curabledefaults | Section15.3 | You have 30 days to cure any default not enumerated in Section15.1andSection15.2. |
| h.“Cause”defined–non-curable defaults | Section15.1and Section15.2 | We may terminate the Franchise Agreement without providing you an opportunity to cure for any of the deficiencies identified in Sections 15.1 or 15.2 of the FranchiseAgreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 27–29)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, a franchisee has 30 days to cure a default, provided that the default is one that is considered curable under the terms of the Franchise Agreement. Specifically, this 30-day cure period applies to defaults not enumerated in Sections 15.1 and 15.2 of the agreement.
It is important to note that not all defaults are curable. For deficiencies identified in Sections 15.1 or 15.2 of the Franchise Agreement, Gokhale Method may terminate the agreement without providing an opportunity to cure. This distinction highlights the importance of understanding the specific terms of the agreement and the nature of any potential default.
This termination clause is a fairly standard practice in franchising, as franchisors often reserve the right to immediately terminate agreements for serious breaches. Prospective Gokhale Method franchisees should carefully review Sections 15.1 and 15.2 of the Franchise Agreement to understand which defaults are not curable and what actions could lead to immediate termination.