What is the timeframe for an attachment or lien to remain on the Crave Cookies business before it can trigger termination?
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, Crave Cookies Franchising has the right to terminate the franchise agreement if an attachment or lien remains on the business for 30 days. However, this is only applicable if the franchisee is not actively contesting the attachment or lien in good faith.
This provision protects Crave Cookies from franchisees who may be facing severe financial difficulties that could impact the brand's reputation or the business's operations. It also ensures that franchisees are proactive in addressing any legal or financial claims against their business.
For a prospective Crave Cookies franchisee, this means maintaining sound financial management and promptly addressing any attachments or liens. If a lien or attachment occurs, it is crucial to contest it in good faith to avoid automatic termination of the franchise agreement. Franchisees should seek legal counsel immediately if such situations arise to ensure they are taking appropriate steps to protect their business and franchise rights.