What happens if a levy or execution is made against the Crave Cookies business?
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 a levy or execution is made against the Crave Cookies business, it constitutes a breach of the franchise agreement. Specifically, under Item 22, the occurrence of a levy or execution allows Crave Cookies Franchising to terminate the franchise agreement without providing an opportunity for the franchisee to cure the breach.
This means that if a legal judgment results in a levy or execution against the franchisee's Crave Cookies business assets, Crave Cookies Franchising has the right to immediately terminate the franchise agreement. This could occur if the franchisee fails to pay debts or taxes, leading to a court order to seize assets. The franchisee would lose the right to operate the Crave Cookies franchise and would be subject to the post-termination obligations outlined in the franchise agreement.
This provision protects Crave Cookies by ensuring that franchisees maintain financial stability and meet their obligations. A levy or execution suggests financial distress, which could negatively impact the brand's reputation and the overall franchise system. Franchisees should be aware of this clause and take steps to manage their finances responsibly to avoid such situations, as it could lead to the loss of their franchise.