What is the exception to the 30-day attachment/lien rule for Crave Cookies franchisees?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- (iii) A receiver or trustee for the Business or all or substantially all of Franchisee's property is appointed by any court, or Franchisee makes a general assignment for the benefit of Franchisee's creditors, or Franchisee is unable to pay its debts as they become due, or a levy or execution is made against the Business, or an attachment or lien remains on the Business for 30 days unless the attachment or lien is being duly contested in good faith by Franchisee, or a petition in bankruptcy is filed by Franchisee, or such a petition is filed against or consented to by Franchisee and the petition is not dismissed within 45 days, or Franchisee is adjudicated as bankrupt;
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2025 FDD)
According to Crave Cookies's 2025 Franchise Disclosure Document, a franchisee's agreement can be terminated if an attachment or lien remains on the business for 30 days. However, there is an exception to this rule.
The exception is that if the franchisee is duly contesting the attachment or lien in good faith, the 30-day period does not apply. This means that if a Crave Cookies franchisee is actively and honestly challenging the validity or amount of the attachment or lien through proper legal channels, the franchise agreement will not be automatically terminated after 30 days.
This provision protects Crave Cookies franchisees from immediate termination in situations where they are legitimately disputing a debt or claim that has resulted in an attachment or lien on their business. It is important for prospective franchisees to understand this exception, as it provides a safeguard against losing their franchise due to circumstances they are actively trying to resolve through legal means. Franchisees should consult with legal counsel to ensure they meet the 'good faith' requirement when contesting any attachment or lien.