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Franchisee Bankruptcies and Receiverships: What You Don't Know Might Surprise You

Franchisors do not want to be associated with insolvent or bankrupt franchisees; it's not good for the brand. Therefore, franchisors carefully craft provisions in franchise agreements designed to allow termination in the event of a franchisee's bankruptcy or the appointment of a receiver as a result of a foreclosure action, typically initiated by the franchisee's lender

19 minute read February 28, 2013 at 09:04 AM
By
Patrick M. Jones and Beata Krakus
Franchisee Bankruptcies and Receiverships: What You Don't Know Might Surprise You

Franchisors do not want to be associated with insolvent or bankrupt franchisees; it's not good for the brand.

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