How long does a Face Foundrie franchisee have to dismiss an involuntary bankruptcy proceeding filed against them?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Franchisee has an involuntary proceeding filed against it under any bankruptcy, reorganization, or similar law and such proceeding is not dismissed within sixty (60) days thereafter;
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to the 2025 Face Foundrie Franchise Disclosure Document, a franchisee has 60 days to dismiss an involuntary bankruptcy proceeding filed against them. This is outlined in Section 14.02, which details the conditions under which Face Foundrie can terminate the franchise agreement without providing an opportunity for the franchisee to correct the issue.
This clause means that if a third party initiates bankruptcy proceedings against a Face Foundrie franchisee, the franchisee must resolve the matter promptly. Failure to have the involuntary proceeding dismissed within the specified 60-day period allows Face Foundrie to terminate the franchise agreement immediately. This protects Face Foundrie from potential financial and reputational risks associated with a franchisee's insolvency.
It is important for prospective Face Foundrie franchisees to understand this term, as it highlights the importance of maintaining financial stability. Franchisees should have contingency plans in place to address potential financial difficulties and ensure they can meet their obligations to avoid such proceedings. The relatively short timeframe underscores the need for swift action in the event of an involuntary bankruptcy filing.