If a B Bops franchisee is convicted of a felony, can the franchise agreement be terminated?

• A.

Without Advance Notice and Cure.

Company may terminate this Agreement without giving advance notice and without providing an opportunity to cure upon the

occurrence of any of the following events:

• (1) Any assignment made for the benefit of Franchisee's creditors, any appointment of a receiver, trustee or similar officer for Franchisee or its assets, the commencement of bankruptcy or other insolvency proceedings by or against Franchisee, or if Franchisee is a partnership, corporation or limited liability company, any of the foregoing occur with respect to any partner, shareholder or member of Franchisee who owns a controlling interest in Franchisee or who has any responsibility for management of Franchisee;
• (2) Conviction or a plea of guilty or no contest by Franchisee or any partner, shareholder or member thereof to any felony or to any crime relating to operation of the Franchise;
• (3) Any purported assignment or transfer of this Agreement, the Franchise or an ownership interest in Franchisee other than in accordance with the provisions of Section 19 hereof;
• (4) Franchisee uses the Licensed Marks for any unauthorized purpose (or otherwise materially impairs the goodwill associated therewith) or makes any unauthorized disclosure or use of any confidential information provided by Company;
• (5) Material breach by Franchise of any mortgage, deed, lease or other governing document covering the Franchise Premises resulting in loss of the right to occupy the Franchise Premises;
• (6) Franchisee fails on three (3) or more separate occasions within any twelve (12) consecutive month period to pay when due any fee or amount required under this Agreement or to otherwise comply with the terms of this Agreement, regardless of whether such events of noncompliance are cured after notice from Company;
• (7) Submission of a materially false financial report to Company, or an intentional misrepresentation by Franchisee to Company in connection with obtaining this Agreement or in operating the Franchise; or
• (8) Voluntary abandonment of the Franchise, including acts or omissions indicating a willingness, desire or intent to discontinue operating such business, or an obvious disregard for the operation of such business in accordance with the quality standards and uniform requirements set forth in this Agreement and in the Operations Manual. An abandonment of the Franchise shall include, but not be limited to, the failure to open the Franchise for business on five (5) consecutive days without the prior written consent of Company.
• B. With Advance Notice and Cure. Company may terminate this Agreement

Source: Item 22 — CONTRACTS (FDD page 53)