What happens if an attachment or lien remains on a Crave Cookies business for 30 days?
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' 2025 Franchise Disclosure Document, if an attachment or lien remains on a Crave Cookies business for 30 days, Crave Cookies Franchising may terminate the Franchise Agreement. However, this termination clause does not apply if the franchisee is actively contesting the attachment or lien in good faith.
This provision protects Crave Cookies from franchisees who are in severe financial distress, as evidenced by outstanding liens or attachments. Such financial instability could negatively impact the Crave Cookies brand and system.
It is important to note the exception: if the franchisee is genuinely disputing the lien or attachment through proper legal channels, the termination clause does not apply. This protects franchisees from immediate termination if they are legitimately fighting a financial claim. Franchisees should maintain thorough documentation of any good faith challenges to attachments or liens to demonstrate compliance.