What is the timeframe for dismissing a petition for appointment of a receiver 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, an Auntie Annes franchisee has 60 days to dismiss a petition for appointment of a receiver to avoid potential termination of the franchise agreement.
Specifically, if a franchisee is the subject of a petition for appointment of a receiver, whether permanent or temporary, they must ensure the petition is dismissed within 60 days. Failure to do so can be grounds for Auntie Annes to terminate the franchise agreement.
This requirement is in place to protect Auntie Annes's interests by ensuring franchisees are financially stable and capable of managing their business. The 60-day window provides an opportunity for the franchisee to resolve the situation and demonstrate their ability to continue operating the franchise successfully. It is important for prospective franchisees to understand these conditions and maintain sound financial practices to avoid such situations.