(A) Upon the foreclosure or other judicial sale of all or a part of a system, a grantee shall notify the grantor of the fact and the notification shall be treated as a notification that a change in control of the grantee has taken place, and the provisions of this chapter governing the consent to transfer or change in ownership shall apply without regard to how the transfer or change in ownership occurred.
(B) Apart from and supplemental to the right to revoke a franchise, a grantor shall have the right to cancel a franchise agreement 120 days after the appointment of a receiver or trustee to take over and conduct the business of a grantee, whether in receivership, reorganization, bankruptcy, or other action or proceeding, unless the receivership or trusteeship shall have been vacated prior to the expiration of the 120 days, or unless:
(1) Within 120 days after its election or appointment, the receiver or trustee has fully complied with all the provisions of the grantee’s franchise agreement and this chapter and remedied all defaults thereunder; and
(2) The receiver or trustee, within the 120 days, has executed an agreement, duly approved by a court having jurisdiction, whereby the receiver or trustee assumes and agrees to be bound by each and every provision of this chapter and the applicable franchise agreement.
(Ord. passed 8-27-02)