What is the cure period for failing to comply with the Golden Krust Caribbean Restaurant franchise agreement?
Golden_Krust_Caribbean_Restaurant Franchise · 2024 FDDAnswer from 2024 FDD Document
ability of the owner of a controlling interest in you, this Agreement or such owner's interest in you is not assigned as herein required;
- (10) you lose the right to possession of the Premises;
- (11) you (or any of your owners) make an unauthorized use or disclosure of any Confidential Information or use, duplicate or disclose any portion of the Brand Standards Manual in violation of this Agreement;
- (12) you violate any health, safety or sanitation law, ordinance or regulation and do not begin to cure the noncompliance or violation immediately, and correct such noncompliance or violation within two (2) hours, after written notice thereof is delivered to you; however, in the event that the franchisor deems the violation an immediate threat to human life, it shall have the authority to immediately close down the restaurant until the situation is contained in its discretion;
- (13) you fail to make payments of any amounts due to us and do not correct such failure within ten (10) days after written notice of such failure is delivered to you;
- (14) you fail to pay when due any federal or state income, service, sales or other taxes due on the operations of the Restaurant, unless you are in good faith contesting your liability of such taxes;
Source: Item 22 — CONTRACTS (FDD page 35)
What This Means (2024 FDD)
According to the 2024 Golden Krust Caribbean Restaurant Franchise Disclosure Document, the cure period for failing to comply with any provision of the Franchise Agreement or any System Standard is thirty (30) days after written notice of the failure is delivered to the franchisee. However, there are some exceptions to this rule.
For instance, if a franchisee violates any health, safety, or sanitation law, ordinance, or regulation, they must begin to cure the noncompliance or violation immediately and correct it within two (2) hours after written notice is delivered. Failure to make payments of any amounts due to Golden Krust Caribbean Restaurant must be corrected within ten (10) days after written notice.
Additionally, if a franchisee fails on three (3) or more separate occasions within any 12-month period to submit reports or data, pay amounts due, or otherwise comply with the agreement, Golden Krust Caribbean Restaurant can terminate the agreement, regardless of whether the failures were corrected after notice. These stipulations highlight the importance of franchisees maintaining compliance with the franchise agreement to avoid potential termination.