What happens if execution is levied against a Crave franchisee's business or property?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.1.8 If any of you shall become insolvent or make a general assignment for the benefit of creditors; if a petition in bankruptcy is filed by you or such a petition is filed against and not opposed by you; if you are adjudicated a bankrupt or insolvent; if a bill in equity or other proceeding for the appointment of a receiver or other custodian for you or your business or assets is filed and consented to by you; if a receiver or other custodian (permanent or temporary) of your assets or property, or any part thereof, is appointed by any court of competent jurisdiction; if proceedings for a composition with creditors under any state or federal law should be instituted by or against you; if a final judgment remains unsatisfied or of record for thirty (30) days or longer (unless a supersedeas bond is filed); if execution is levied against your business or property; if suit to foreclose any lien or mortgage against the premises or equipment is instituted against you and not dismissed within thirty (30) days; or if the real or personal property of the business shall be sold after levy thereupon by any sheriff, marshal, or constable.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, if execution is levied against a franchisee's business or property, it can lead to termination of the franchise agreement. Specifically, if a final judgment remains unsatisfied or of record for thirty days or longer (unless a supersedeas bond is filed), or if execution is levied against the business or property, Crave has grounds for terminating the agreement.
This provision protects Crave by ensuring that franchisees maintain financial stability and meet their obligations. A levy of execution suggests serious financial distress, which could negatively impact the Crave brand and system. The 30-day period provides a short window for the franchisee to resolve the issue, either by satisfying the judgment or filing a bond to suspend it.
For a prospective Crave franchisee, this highlights the importance of maintaining sound financial management and addressing any legal judgments promptly. Failure to do so could result in the loss of the franchise. Franchisees should understand their obligations and the potential consequences of financial instability as outlined in the franchise agreement.