We believe the best partnerships are built on transparency. This guide is designed to help you understand how we manage operational standards and what happens if a site falls behind the requirements outlined in our agreement.
What is a "Default" and how is it identified?
A default is when a site consistently performs below the minimum standards required by the franchise agreement. These are typically grouped into three areas:
Operational Quality: Ratings, Audit Scores and performance KPI’s
Compliance: Following brand standards and site upkeep.
Engagement: Responsiveness to communication, attendance at meetings and cooperation.
What is a “Trigger Period”?
A Trigger period is the length of time we allow the standard to occur before acknowledging it as a potential default process, this period differs depending on the trigger.
Operational Quality: 2 - 4 Weeks
Compliance: 1 - 2 Weeks
Engagement: 2 - 4 Weeks
How will I be notified if my site is at risk?
Before any formal action is taken, we ensure you are made aware of the performance gap. You will receive informal warnings through performance emails, audit feedback, or phone calls with a written recap. We aim to ensure there are no surprises.
The Default & Remedy Period
What happens if my site enters potential "Remedy Period"?
Once a trigger is confirmed, you will receive a formal notification. This marks the start of the Remedy period. You will receive clear communication of the set amount of time and steps you need to take to bring the site back up to standard.
What is a SMART Action Plan?
To help you succeed, we use a structured action plan tracked via a shared project management tool. Every plan must be:
Specific & Measurable: Clear goals and evidence of improvement.
Agreed & Realistic: Achievable steps that we both acknowledge.
Time-bound: A clear deadline for resolution.
What level of support can I expect during this time?
Depending on the severity of the issue, we will provide regular updates, scheduled check-ins, and potentially site visits to help you execute the action plan and get back on track.
Escalation & Financials
When does an issue move to the "Escalation" stage?
Escalation occurs if the issue remains unresolved after the remedy period, or if there is a clear lack of engagement in the process. This typically begins with a formal meeting, to discuss the barriers to your success.
Are there financial consequences for non-compliance?
Yes. To protect the brand’s reputation, we may implement financial repercussions if intervention is required. These may include:
Admin Fees for missed mandatory meetings.
Recharges for third-party services (such as deep cleans or equipment repairs).
Fees for mandatory staff retraining or additional site audits.
The Final Stages: The Notice of Default
What happens if the issue is not resolved after escalation?
If three cycles of escalation pass without resolution, the site receives the formal notice of default. This is a formal legal process that includes:
Final Warning: Warning of potential termination.
Final Escalation: Your site may be subject to further financial repercussions.
Default Outcome: Notification of intent to terminate the agreement or exercise step-in rights.
Can a default be reversed?
Absolutely. Our primary goal is not to terminate a site, but to restore it to its full potential. If you successfully implement the action plan and demonstrate consistent improvement, the default will be removed.
Where can I find a record of my communications?
To ensure fairness and transparency, every formal communication is sent via email and logged in our central system. You can view all action plans and progress updates via your shared Monday.com board at any time.