What section of the Monicals Pizza Franchise Agreement defines 'cause' related to curable defaults?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise or Other Agreement | Summary |
|---|---|---|
| g. "Cause" defined curable defaults | Section 16.2 | If a default arises from your failure to comply with a mandatory specification in the Franchise Agreement or Manual, you can avoid termination of the Franchise Agreement if you cure the default within 30 days of receiving our notice of default. If a default arises from your failure to maintain insurance, you can avoid termination of the Franchise Agreement if you cure the default within 10 days of receiving our notice of your failure to maintain insurance. If a default arises from your failure to make payments due to us, you can avoid termination of the Franchise Agreement if you cure the default within 5 days of receiving our notice of default. If we terminate the Franchise Agreement following a default, your interest in the franchise will terminate. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 32–41)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, Section 16.2 of the Franchise Agreement defines 'cause' related to curable defaults. This section outlines specific scenarios where a franchisee's default can be 'cured,' allowing them to avoid termination of the agreement.
Specifically, if the default stems from non-compliance with a mandatory specification in the Franchise Agreement or Manual, the franchisee has 30 days from the notice of default to rectify the situation. For defaults related to failure to maintain insurance, the cure period is shorter, at 10 days from the notice. The shortest cure period applies to defaults involving failure to make payments due to Monicals Pizza, where the franchisee has only 5 days from the notice to cure the default.
It is important to note that these cure periods are only applicable to the specific types of defaults mentioned. Other types of defaults may not be curable, potentially leading to immediate termination of the Franchise Agreement. Franchisees should carefully review Section 16.2 to fully understand their rights and obligations regarding defaults and the possibility of curing them.