What is the maximum cure period for a non-monetary default under The Standardx Franchise Agreement?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
For franchises governed by Minnesota law, we will comply with Minn. Stat. §80C.14, Subds. 3, 4, and 5 which require, except in certain specified cases, that you be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the Franchise Agreement.
In the event of a default by Franchisee under the Franchise Agreement Hyatt shall allow Lender thirty (30) days from the date of any such notice to cure or cause to be cured the default(s) specified in such notice. If such default is of a non
monetary nature and cannot be cured within said thirty (30) day period by reason of the time necessary for Lender to exercise its rights and remedies pursuant to the Loan Documents or applicable law, then Lender shall have such additional period of time, as is reasonably necessary to complete the exercise of its rights and remedies, provided that Lender proceeds with and continues to cure such non-monetary default and exercise of remedies with due diligence, but in no event shall such period exceed one hundred and eighty (180) days following notice to Lender. Notwithstanding any of the foregoing, in the event of a health or life safety default, the cure period shall be three (3) days.
Source: Item 18 — OTHER INCOME (LOSS), NET (FDD pages 187–399)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, a franchisee typically has 30 days to cure a non-monetary default after receiving written notice from Hyatt. However, there are exceptions and specific circumstances that can affect this cure period.
For defaults related to health or life safety, the cure period is significantly shorter, only 3 days. In situations where a lender is involved and the default is non-monetary but cannot be resolved within 30 days due to the lender's necessary actions under loan documents or applicable law, the lender may have additional time to cure the default. This extended period should be reasonably necessary to complete the exercise of the lender's rights and remedies, but it cannot exceed 180 days from the notice to the lender, provided the lender is diligently working to cure the default.
For franchisees operating under Minnesota law, The Standardx will provide 90 days' notice of termination, with 60 days to cure, except in certain specified cases. It is important for prospective franchisees to understand these cure periods and the specific conditions that may apply, as failure to cure a default within the allotted time can lead to termination of the franchise agreement.