What happens if a receiver or trustee is appointed for a 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, the appointment of a receiver or trustee for the business or the franchisee's property can trigger specific consequences. If a receiver or trustee is appointed by any court for the Crave Cookies business, or for substantially all of the franchisee's property, it constitutes a breach of the franchise agreement.
This situation allows Crave Cookies to terminate the franchise agreement. Other events that can lead to termination include the franchisee making a general assignment for the benefit of creditors, being unable to pay debts as they become due, or facing a levy or execution against the business that remains for 30 days (unless contested in good faith). Filing for bankruptcy, or having a bankruptcy petition filed against the franchisee that is not dismissed within 45 days, or being adjudicated bankrupt also constitute a breach.
These terms are fairly standard in franchising, designed to protect the franchisor's brand and ensure the stability of the franchise network. Franchisees should be aware that financial instability can have serious repercussions, including the loss of their franchise.