What are the specific requirements for contesting an attachment or lien in good faith for a Crave Cookies franchise?
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, a franchisee can contest an attachment or lien on their business. If an attachment or lien remains on the Crave Cookies business for 30 days, it can be grounds for termination of the franchise agreement, unless the franchisee is duly contesting the attachment or lien in good faith.
This means that if a franchisee faces a legal claim resulting in an attachment or lien, they have a 30-day window to begin a good faith contest of that claim. What constitutes 'good faith' is not explicitly defined in this section, but it generally implies a sincere and honest effort to dispute the validity or amount of the attachment or lien through appropriate legal channels.
For a prospective Crave Cookies franchisee, this clause offers some protection against immediate termination if they face unexpected legal challenges. However, it places the onus on the franchisee to act quickly and demonstrate a genuine effort to resolve the issue. It would be prudent for a potential franchisee to seek clarification from Crave Cookies regarding what specific actions or documentation would satisfy the 'good faith' requirement in the event of such a situation.