"'The tone of the e-mail is positive,' said Cohen."

""The franchise entities are still alive and kicking, and a new company has moved in to grow the [franchise] brand."

Robert Cohen is right. Obviously if things were really bad, the public relations people would be sending an e-mail with a negative tone. LoL

Oh, and prospective purchasers are already lining up to attend discovery day; although there are 4,000 systems to choose from, how often do you get to tell your spouse: "Honey, this franchisor really knows its stuff. And we don't have to worry about the franchisor going bankrupt 'cause they already are bankrupt." 

I remember a judge in EDNY when the attorney for the filing debtor said that his client would "work with" the Trustee in a Chapter 7. The judge told the attorney that if he or his client even gave a phone call to the Trustee she would hold them both in contempt.

Suggestion to zees: have your IndFA hire a bankruptcy specialist, and listen to counsel...not e-mails written by the PR people. 

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400