What financial conditions, such as insolvency or bankruptcy, can lead to immediate termination of the Apricot Lane franchise agreement?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
Becomes insolvent or makes a general assignment for the benefit of creditors, or if a petition in bankruptcy is filed by FRANCHISEE or such a petition is filed against and consented to by FRANCHISEE, or if FRANCHISEE is adjudicated bankrupt, or if a bill in equity or other proceeding for the appointment of a receiver of FRANCHISEE or other custodian by FRANCHISEE, or if a receiver or other custodian (permanent or temporary) of FRANCHISEE's assets or property, or any part thereof, is appointed by any court of competent jurisdiction, or if proceedings for a composition with creditors under any state or federal law should be instituted by or against FRANCHISEE, or if a final judgment remains unsatisfied or of record for thirty (30) days or longer (unless superseded as bond is filed), or if execution is levied against the Franchised Business or assets used therein, or suit to foreclose any lien or mortgage against the Premises or equipment is instituted against FRANCHISEE and not dismissed within thirty (30) days, or if the real or personal property of FRANCHISEE's Franchised Business shall be sold after levy thereupon by any sheriff, marshal, or constable;
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane Franchise Disclosure Document, several financial conditions can lead to the immediate termination of the franchise agreement. These include becoming insolvent or making a general assignment for the benefit of creditors. Additionally, if the franchisee files a petition in bankruptcy, or if such a petition is filed against them and they consent to it, the agreement can be terminated.
Other conditions that can trigger immediate termination involve court actions and judgments. Specifically, if the franchisee is adjudicated bankrupt, or if a receiver or custodian is appointed for their assets, the agreement may be terminated. Similarly, if proceedings for a composition with creditors are instituted by or against the franchisee, or if a final judgment remains unsatisfied for thirty days or longer, Apricot Lane can terminate the agreement.
Furthermore, the franchise agreement can be terminated if execution is levied against the franchised business or its assets, or if a suit to foreclose any lien or mortgage against the premises or equipment is instituted against the franchisee and not dismissed within thirty days. Finally, if the real or personal property of the franchisee's business is sold after levy by any sheriff, marshal, or constable, Apricot Lane has grounds for immediate termination.