(A) In addition to all other legal and equitable rights and remedies available to the franchisor in connection with a breach by a franchisee of its franchise, the franchisor shall have the right to terminate a franchise, and all rights and privileges pertaining thereto, in the event that:
(1) Franchisee breaches any material provision of its franchise and fails to cure such breach as provided herein;
(2) Franchisee attempts to evade any of its obligations under its franchise;
(3) Franchisee commits any fraud or deceit against the franchisor or any subscriber;
(4) Franchisee becomes insolvent, is unwilling or unable to pay its debts as they come due, or is adjudged a bankrupt; or
(5) Franchisee misrepresents a material fact in applying for or negotiating for approval of its franchise or any renewal thereof.
(B) In the event franchisor determines that any of the foregoing events (“default events”) has occurred, franchisor may make a written demand on franchisee that it cure any default event within 30 days of receiving franchisor’s demand. Franchisee shall be deemed to have received written demand from franchisor three days after franchisor deposits a written demand addressed to franchisee, postage prepaid, in the United States mail.
(C) If franchisee fails to cure any default event within the 30 days, franchisor may place the issue of termination of the franchise before the City Council at a regularly scheduled meeting of the Council. If the City Council determines that good cause exists to terminate the franchise, franchisor shall proceed as follows:
(1) Franchisor shall conduct a public hearing on the issue of termination of the franchise upon 14 days written notice to franchisee, which notice shall include the date, time and place of the hearing and shall specify the default events which the franchisor believes justify termination of the franchise.
(2) If, after a full public hearing is conducted, the franchisor determines that franchisee has committed a default event and has not cured the same, the franchisor may, by resolution duly adopted in writing, terminate the franchise and all of franchisee’s rights and privileges thereunder, effective 30 days after the public hearing and only if franchisee fails to cure its default within the 30 days.
(3) The City Council shall place the issue of termination on its agenda for the first Council meeting following the expiration of the 30 day period. If the Council finds at such meeting that franchisee has failed to cure its default, franchisor may immediately terminate the franchise and all of franchisee’s rights and privileges thereunder.
(Ord. 48, 6th Series, passed 10-5-2010)