Under what insolvency-related conditions can the Manufacturer immediately terminate the 7 Brew agreement with the Owner?

According to 7 Brew's 2025 Franchise Disclosure Document, the Manufacturer (7 Brew) has the right to immediately terminate the agreement with the Owner (franchisee) under specific insolvency-related conditions. These conditions include if the Owner becomes insolvent, meaning they are unable to pay their debts.

Another condition that would allow 7 Brew to terminate the agreement is if a receiver is appointed to take possession of all or substantially all of the Owner's property. This usually happens when a court orders a receiver to manage the Owner's assets due to financial distress. 7 Brew can also terminate the agreement if the Owner makes a general assignment for the benefit of creditors, which is a voluntary transfer of the Owner's assets to a trustee who will then liquidate the assets to pay off debts.

Finally, 7 Brew can terminate the agreement if the Owner files a voluntary petition in bankruptcy, indicating they are seeking legal protection from creditors. Similarly, if an involuntary petition in bankruptcy is filed against the Owner by their creditors, and that petition is not dismissed within 60 days of filing, 7 Brew has grounds for immediate termination. These terms are included to protect 7 Brew from financial and legal risks associated with a franchisee's insolvency.