What is the definition of 'substantially all' of a Chocolate Bash franchisee's property in the context of appointing a receiver or trustee?

According to Chocolate Bash's 2024 Franchise Disclosure Document, a 'Transfer' includes the voluntary or involuntary transfer, sale, or disposal of substantially all of the assets of the business. This definition is relevant when determining if a franchisee has transferred control of the business, which can have implications under the franchise agreement.

Specifically, if a Chocolate Bash franchisee transfers, sells, or disposes of substantially all of the assets of their business, whether voluntarily or involuntarily, it is considered a 'Transfer' under the agreement. This also applies to transferring the agreement itself, a direct or indirect ownership interest of more than 25% of the business, or control of the business.

This definition is important because it clarifies what actions constitute a transfer of the Chocolate Bash franchise. If a franchisee is considering selling a significant portion of their assets, they need to be aware that this could be considered a transfer and may require franchisor approval. Understanding this definition helps franchisees avoid unintentionally violating the terms of their franchise agreement.