What is the timeframe for dismissing attachment proceedings against an Auntie Annes franchisee to avoid termination?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
wingly maintain false books or records or submit any false reports to us related to the Franchised Business.
- D. You abandon the Franchised Business or otherwise voluntarily suspend operation of the Franchised Business without our prior written consent for five or more consecutive business days on which you were required to operate.
- E. Your interest (or your affiliate's interest) in the lease or sublease for the Accepted Location is terminated or expires or you (or your affiliate) otherwise lose possession of the Accepted Location.
- F. We send you two or more written notices of default under this Agreement for the same or a similar cause or reason in any consecutive 12-month period, whether or not cured.
- G. You: (i) become insolvent by reason of an inability to pay debts as they come due; (ii) are adjudicated bankrupt; (iii) file a petition for bankruptcy protection; (iv) are the debtor in an involuntary bankruptcy petition that is not dismissed within 60 days; (v) are the debtor in an assignment for the benefit of creditors that is not dismissed within 60 days; (vi) are the subject of a voluntary or involuntary petition for reorganization or similar proceeding that is not dismissed within 60 days; (vii) are the subject of a petition for appointment of a rece
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, if a franchisee has their bank accounts, property, or receivables attached, they have 60 days to dismiss the attachment proceedings to avoid potential termination of the franchise agreement.
This means that if a legal judgment or other action results in a lien or attachment against the franchisee's assets, they must resolve the issue within this timeframe. Failure to do so constitutes grounds for Auntie Annes to terminate the franchise agreement.
This clause protects Auntie Annes from franchisees who may be facing severe financial difficulties that could impact their ability to operate the franchise effectively and uphold the brand's reputation. It is a fairly standard clause in franchise agreements, allowing the franchisor to sever ties with businesses that demonstrate high financial risk.