What is the timeframe for dismissing an execution levied against an Auntie Annes franchisee's business or property to avoid termination?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
y 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 the 2024 Auntie Annes Franchise Disclosure Document, an Auntie Annes franchisee has 60 days to dismiss an execution levied against their franchised business or property. Failure to do so within this timeframe may result in the termination of the Franchise Agreement.
This clause protects Auntie Annes by ensuring franchisees address legal and financial issues promptly to maintain the stability and reputation of the brand. It also motivates franchisees to resolve such issues quickly to avoid losing their franchise.
Many franchise agreements contain similar clauses to protect the franchisor's interests and maintain brand standards. Franchisees should be aware of these requirements and have plans in place to address potential legal or financial issues promptly.
Therefore, it is crucial for prospective Auntie Annes franchisees to understand the implications of this clause and ensure they have adequate financial and legal resources to address any executions levied against their business or property within the specified timeframe.