If a Bee Organized franchisee consents to the appointment of a trustee, is that a default?

According to Bee Organized's 2025 Franchise Disclosure Document, if a franchisee consents to the appointment of a trustee, receiver, conservator, custodian, or liquidator for their business or assets, it constitutes a default under the franchise agreement. Specifically, if an involuntary petition in bankruptcy is filed against the franchisee, and the franchisee seeks, consents to, or acquiesces in the appointment of any trustee, receiver, conservator, custodian or liquidator for the franchisee's business or any assets, it is considered a default.

Additionally, if a bill in equity or other proceeding is filed for the appointment of any trustee, receiver, conservator, custodian or liquidator of the franchisee for the franchisee's business or any assets, and the franchisee consents to it, this also constitutes a default. These conditions are outlined as events that allow Bee Organized to take action against the franchisee, potentially leading to termination of the franchise agreement.

This means that a Bee Organized franchisee needs to be extremely cautious about their financial and legal standing. Consenting to any form of external control over their business or assets, even if it seems like a helpful solution during financial difficulties, can trigger a default under the franchise agreement and put their franchise at risk. Franchisees should seek legal and financial advice before agreeing to any such arrangements.