What is the reference for federal bankruptcy law mentioned in the Bevaris Alliance California addendum?

According to Bevaris Alliance's 2024 Franchise Disclosure Document, the California addendum states that the franchise agreement provides for termination upon bankruptcy. However, this provision might not be enforceable under federal bankruptcy law, specifically referencing 11 U.S.C.A. Sections 101 et seq. This section of the U.S. Code contains the core provisions of federal bankruptcy law.

For a prospective Bevaris Alliance franchisee in California, this means that while the franchise agreement may state that bankruptcy is grounds for termination, federal law might override this provision. This is a critical consideration, as it could impact the franchisee's rights and obligations if they face financial difficulties and consider bankruptcy.

It is advisable for potential franchisees to consult with a legal professional to fully understand the implications of this clause and how federal bankruptcy law would apply in their specific circumstances. This ensures they are aware of their rights and the potential limitations of the franchise agreement in the event of bankruptcy.