How long can an attachment or lien remain on a Fly To Fit business before it triggers termination?
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, an attachment or lien can remain on the Fly To Fit business for up to 30 days before it can trigger termination of the franchise agreement. However, this is conditional. If the franchisee is actively contesting the attachment or lien in good faith, it will not trigger termination.
This clause protects Fly To Fit from franchisees who are unable to manage their finances or are facing significant legal challenges that could impact the brand. It also ensures that the business remains free from encumbrances that could affect its operations or value.
For a prospective Fly To Fit franchisee, this means maintaining sound financial practices and promptly addressing any legal claims or financial obligations to avoid jeopardizing the franchise agreement. It is also important to document and demonstrate any good-faith efforts to contest attachments or liens to prevent unwarranted termination.