Guest writes - You are correct in a very technically legal sense, but not in a practical sense.
If the Zor cannot supplyn the Zees, what happens? What happens when the trustee is tasked with the advertising schedule? Nothing, that's what. It is a 7, not an 11 so there IS no trustee managingt he business and running it. The court only administers a sal. That is all tghat is being managed.
If the assets sold at bankruptcy auction are bought by someone who is similarly incapable of managing the brand, who is going to force the franchisees to do anything? No one.
If the Zor could not make enogh money off the royalties from the franchise agreements to keep afloat, it is not very likely that someone else will want to pay anything of value for themas a going concern. If they are sold for pennies, maybe someone ca make a run of it, but I would not expect it. If the reale state were valauble, maybe it makes sense. Maybe.
Reply - You have no friggin idea of what you are talking about. What you have written is pure speculative nonsense. Whether you like it or not there is value in the franchise agreements and leases that could be acquired by a buyer. And the court will protect those assets without much regard for any real or percieved suffering by franchisees. Bankruptcy is protection; protection for the entity going bankrupt and the estate. It cares nothing for the franchisees who are not creditors.
Your naivete is supreme!
The Truth Shall Set You Free!
TIF



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