(a) Generally. A franchise shall be deemed revoked 120 days after an assignment for the benefit of creditors or the appointment of a receiver or trustee to take over the business of a franchisee, whether in a receivership, reorganization, bankruptcy assignment for the benefit of creditors, or other action or proceeding. The franchise may be reinstated at the County's sole discretion if within that 120-day period:
(1) the assignment, receivership, or trusteeship is vacated; or
(2) the assignee, receiver, or trustee fully complies with the terms and conditions of this article and the applicable franchise agreement and executes an agreement, approved by a court, under which it assumes and agrees to be bound by the terms and conditions of this article, the terms and conditions of the franchise agreement, and any other conditions established or required by applicable law.
(b) Service of notice of revocation. In the event of foreclosure or other judicial sale of any of the facilities, equipment, or property of a franchisee, the County may revoke the franchise following a public hearing before the County Council by serving notice on the franchisee and the successful bidder, in which event the franchise and all rights and privileges of the franchise will be revoked and will terminate 30 days after serving the notice unless the County has approved the transfer of the franchise to the successful bidder and the successful bidder has covenanted and agreed with the County to assume and be bound by the terms and conditions of the franchise agreement and this article.
(Bill No. 54-06)