If a Learningrx franchisee has a legitimate dispute with creditors, does that affect their renewal?

Franchisee is in breach of any other term, condition, or provision of this Agreement.

• (b) Without Notice. This Agreement and license will immediately terminate without notice in the event that:
  • (vi) Franchisee misrepresented or omitted material facts which induced Franchisor to enter into this Agreement;
  • (vii) Franchisee fails to complete the required initial training or has failed to designate an acceptable site pursuant to Section 10;
  • (viii) Franchisee fails to obtain all required licenses, permits or certifications, or to hire the required licensed professionals to operate the Business within six months of signing this Agreement. A permanent or temporary receiver or trustee for the Center or all or substantially all of Franchisee's property is appointed by any court, or any such appointment is consented to or not opposed through legal action by Franchisee, or Franchisee makes a general assignment for the benefit of Franchisee's creditors or Franchisee makes a written statement to the effect that Franchisee is unable to pay its debts as they become due, or a levy or execution is made on the license, or an attachment or lien remains on the Center for thirty (30) days unless the attachment or lien is being duly contested in good faith by Franchisee and Franchisor is advised in writing;
  • (ix) Franchisee loses possession or the right of possession of all or a significant part of the Center through condemnation, casualty, lease termination or mortgage foreclosure and the Center is not relocated or reopened as provided in Section 16;
  • (x) Franchisee contests the validity of, or Franchisor's ownership of, any of the Marks in any court or proceeding;
    • (xi) Franchisee makes an unauthorized Transfer;

• (xii) Franchisee is a business entity and any action is taken which purports to merge, consolidate, dissolve or liquidate the entity without Franchisor's prior written consent which consent shall not be unreasonably withheld.
• (xiii) Franchisee voluntarily abandons or ceases operation of the Business for more than five (5) consecutive business days; or
• (xiv) The Franchisee, any owner of the Franchisee entity, Manager, or employee is convicted of a felony, a crime involving moral turpitude, any crime or offense that is reasonably likely, in the sole opinion of the Franchisor, to materially and unfavorably affect the LearningRx System, Marks, goodwill or reputation, or charged or convicted of any crime or misdemeanor involving children.
• (c) Franchisee or Franchisee's owner or any guarantor of this Agreement starts, acquires or operates a competing business or diverts or attempts to divert current or prospective customers to a competing business in violation of the terms of the Confidentiality and Covenant Not To Compete Agreement attached to this Agreement as Attachment IX, and incorporated herein by reference.
• 13.2 Effect of Termination.

Source: Item 23 — RECEIPT (FDD pages 54–209)