How long does a Carvel franchisee have to dismiss attachment proceedings against their bank accounts, property, or receivables to avoid termination?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
arks, whether on a local, regional, or national scale; (iii) make, or have made, any material misrepresentation to us related to the Franchised Business or this Agreement; or (iv) knowingly maintain false books or records or submit any false reports to us related to the Franchised Business.
- D. You abandon the Franchised Business or otherwise voluntarily suspend operation of the Franchised Business without our prior written consent for five or more consecutive business days on which you were required to operate.
- E. Your interest (or your affiliate's interest) in the lease or sublease for the Accepted Location is terminated or expires or you (or your affiliate) otherwise lose possession of the Accepted Location.
- F. We send you two or more written notices of default under this Agreement for the same or a similar cause or reason in any consecutive 12-month period, whether or not cured.
- G. You: (i) become insolvent by reason of an inability to pay debts as they come due; (ii) are adjudicated bankrupt; (iii) file a petition for bankruptcy protection; (iv) are the debtor in an involuntary bankruptcy petition that is not dismissed within 60 days; (v) are the debtor in an assignment for the benefit of creditors that is not dismissed within 60 days; (vi) are the
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, a franchisee has 60 days to dismiss attachment proceedings against their bank accounts, property, or receivables to avoid potential termination of their franchise agreement. Specifically, if a franchisee's bank accounts, property, or receivables are attached, and the attachment proceedings are not dismissed within 60 days, Carvel has grounds for terminating the franchise agreement.
This condition is part of a broader set of circumstances related to financial solvency and legal judgments that could lead to termination. Other events that trigger a similar 60-day window for resolution include involuntary bankruptcy petitions, assignments for the benefit of creditors, petitions for reorganization, and the appointment of a receiver. Additionally, a final judgment of $10,000 or more that remains unsatisfied for more than 60 days can also lead to termination, unless an appeal bond is obtained.
This clause highlights the importance of maintaining financial stability and promptly addressing legal or financial challenges. Franchisees should be aware of these conditions and take immediate action to resolve any such issues within the stipulated timeframe to avoid jeopardizing their franchise agreement with Carvel. It is also important to note that these terms are subject to applicable laws and may be interpreted differently based on jurisdiction.