What happens if a receiver is appointed for the Crave Cookies business?

According to the 2025 Crave Cookies Franchise Disclosure Document, the appointment of a receiver or trustee for the business or the franchisee's property by any court can lead to the termination of the franchise agreement. Additionally, if the franchisee makes a general assignment for the benefit of creditors, is unable to pay debts as they become due, or if a levy, execution, attachment, or lien remains on the business for 30 days (unless contested in good faith), it can also result in termination.

This clause protects Crave Cookies from franchisees who become financially unstable. If a franchisee's business is under the control of a receiver or trustee, or if the franchisee is unable to manage their debts, Crave Cookies has the right to terminate the agreement. This ensures that the brand is not associated with a failing business, which could damage its reputation.

For a prospective Crave Cookies franchisee, this means that maintaining financial stability is crucial. Failure to manage debts or facing legal actions that result in the appointment of a receiver could lead to the loss of the franchise. It is important to have a solid business plan and financial management strategy to avoid such situations and maintain a good standing with Crave Cookies.