If a Boulder Designs franchisee is adjudicated bankrupt, can the franchise agreement be terminated?

| Sections | | | | | Provision | Section in the Franchise Agreement | Summary
Agreement following a default, your interest in | | | | the franchise will terminate. | | | | 5.4, 5.5. | | | | We can terminate if you fail to develop the | | | | and 16.2 | | | | Approved Location within 180 days after the | | | | Effective Date of the Franchise Agreement. We | | | | also can terminate for failure to pay the Initial | | | | Franchise Fee or other amounts due within 10 | | | | days after receiving written notice; failure to | | | | have your Internal Manager satisfactorily | | | | complete any training program; attempted or | | | | actual transfer of business in violation of the | | | | Franchise Agreement; misuse of the Marks, or | | | | other act which impairs the goodwill of any of | | | | the Marks; material misrepresentation or | | | | omission in your franchise application; are | | | | conviction or "no contest" plea to a crime or | | | | offense that would place them on the sex | | | | offenders registry, was a violent felony, crimes | | | | against a human, sexual harassment against an | | | | employee, domestic abuse charges, animal | | | | abuse, elderly abuse, substance abuse, DWI or | | | | DUI, any theft charge or is likely to affect the | | | | reputation of either party or the Franchised | | | | Business; disclose, duplicate, or otherwise | | | | misuse the Manual, Confidential Information | | | | or the Marks; are adjudicated bankrupt, insolvent or make a general assignment for the | | | | benefit of creditors or to pay any fees due us or | | | | any Affiliate; receive three or more default | | | | notices within two years,(or failure on 2 or | | | | more separate noticed occasions to comply | | | | with the same obligation in any time-frame); | | | | continue to violate any health, safety or other | | | | laws or conduct the Franchised Business in a | | | | manner creating a health or safety hazard to | | | | customers, employees or the public; take any | | | | action reserved to us; fail to comply with | | | | applicable law after notice; repeatedly breach | | | | the Franchise Agreement or fail to comply with | | | | specifications; engaging in wholesale | | | | transactions without our prior written consent; | | | | or default under any other agreement between | | | | you and us(or an Affiliate) such that we (or the | | | | Affiliate) have the right to terminate the | | | | agreement. Termination of a Franchise | | | | Agreement will not automatically result in the | | | |

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 38–44)