What happens if a levy or execution is made against a Fly To Fit business?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 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 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, if a levy or execution is made against a Fly To Fit business, it constitutes a breach of the franchise agreement. Specifically, the agreement states that if a levy or execution is made against the business, this is one of several conditions that can trigger further action from Fly To Fit.
This clause protects Fly To Fit by allowing them to take action if the franchisee's business faces financial distress that could impact its ability to operate or damage the Fly To Fit brand. The inclusion of this clause is relatively standard in franchise agreements, as franchisors need to safeguard their trademarks and operational standards.
It's important for a prospective Fly To Fit franchisee to understand that financial stability and compliance with the franchise agreement are critical. Failure to manage the business's finances to the point where a levy or execution occurs can lead to serious repercussions, potentially including termination of the franchise agreement.