What events related to insolvency or bankruptcy can lead to termination of the Hyper Kidz agreement?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.1.8 If any of your principals shall become insolvent or make a general assignment for the benefit of creditors; if a petition in bankruptcy is filed by you or such a petition is filed against and not opposed by you; if you are adjudicated a bankrupt or insolvent; if a bill in equity or other proceeding for the appointment of a receiver or other custodian for you or your business or assets is filed and consented to by you; if a receiver or other custodian (permanent or temporary) of your assets or property, or any part thereof, is appointed by any court of competent jurisdiction; if proceedings for a composition with creditors under any state or federal law should be instituted by or against you; if a final judgment remains unsatisfied or of record for thirty (30) days or longer (unless a supersedeas bond is filed); if execution is levied against your business or property; if suit to foreclose any lien or mortgage against the premises or equipment is instituted against you and not dismissed within thirty (30) days; or if the real or personal property of the business shall be sold after levy thereupon by any sheriff, marshal, or constable.
Source: Item 23 — RECEIPTS (FDD pages 52–205)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, several events related to insolvency or bankruptcy can lead to the termination of the franchise agreement. Specifically, if any of the franchisee's principals become insolvent or make a general assignment for the benefit of creditors, this can trigger termination. Additionally, if a bankruptcy petition is filed by the franchisee, or if a petition is filed against them and not opposed, it can lead to termination.
Furthermore, adjudication as bankrupt or insolvent is grounds for termination. The filing of a bill in equity or other proceeding for the appointment of a receiver or custodian for the franchisee's business or assets, consented to by the franchisee, can also result in termination. The appointment of a receiver or custodian (permanent or temporary) of the franchisee's assets or property by a court of competent jurisdiction is another potential cause.
Proceedings for a composition with creditors under any state or federal law, instituted by or against the franchisee, can lead to termination. If a final judgment remains unsatisfied or of record for thirty days or longer (unless a supersedeas bond is filed), this can also trigger termination. Execution levied against the franchisee's business or property, or the institution of a suit to foreclose any lien or mortgage against the premises or equipment that is not dismissed within thirty days, are additional grounds. Finally, the sale of the real or personal property of the business after levy by any sheriff, marshal, or constable can also result in the termination of the Hyper Kidz franchise agreement.