If a court appoints a conservator for a Casiola franchisee's business, and the appointment remains for an aggregate of 60 days, does it matter if those days are consecutive?

According to Casiola's 2024 Franchise Disclosure Document, if a court appoints a conservator for a franchisee's business, it does not matter whether the 60 days are consecutive or not. If a court appoints a conservator, custodian, or liquidator for the Casiola franchisee's business or assets, and the appointment remains for an aggregate of 60 days, whether or not consecutive, from the date of entry, this constitutes an event of default.

This means that Casiola views the franchisee's inability to manage their business, requiring court intervention, as a serious breach of the franchise agreement. The franchisee does not have to consent to the appointment for it to be considered a breach. The franchisee also does not have to fail to discharge the appointment within a specific time frame. The only condition is that the appointment or order remains for an aggregate of 60 days.

For a prospective Casiola franchisee, this clause highlights the importance of maintaining stable business operations and financial health. Any event leading to the appointment of a conservator, even if temporary, could jeopardize the franchise agreement if the total duration of the appointment reaches 60 days. This could lead to termination of the franchise agreement, regardless of whether those days are consecutive or broken up by periods where the conservatorship is lifted.