What happens if an attachment or lien remains on the Bombs Away Business for 30 days?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- (iii) a receiver or trustee for the Business or all or substantially all of Franchisee's property is appointed by any court, or Franchisee makes a general assignment for the benefit of Franchisee's creditors, or Franchisee is unable to pay its debts as they become due, or a levy or execution is made against the Business, or an attachment or lien remains on the Business for 30 days unless the attachment or lien is being duly contested in good faith by Franchisee, or a petition in bankruptcy is filed by Franchisee, or such a petition is filed against or consented to by Franchisee and the petition is not dismissed within 45 days, or Franchisee is adjudicated as bankrupt;
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, if an attachment or lien remains on the Bombs Away Business for 30 days, Bombs Away Franchising may terminate the Franchise Agreement. However, this termination clause does not apply if the franchisee is actively contesting the attachment or lien in good faith.
This provision protects Bombs Away from potential financial instability or legal issues affecting a franchisee's business operations. Liens and attachments can indicate financial distress or unresolved disputes, which could negatively impact the brand's reputation and the stability of the franchise system.
For a prospective Bombs Away franchisee, this means maintaining sound financial practices and promptly addressing any legal claims or financial obligations to avoid jeopardizing the franchise agreement. It is important to understand the conditions under which Bombs Away can terminate the agreement without a cure period, as these situations require immediate attention to protect the franchisee's investment.