Unless otherwise provided for in the franchise agreement:
(a) A franchise granted hereunder shall, at the option of the grantor, cease and terminate 120 days after appointment of a receiver or receivers, or trustee or trustees, to take over and conduct the business of the grantee, whether in a receivership, reorganization, bankruptcy or other action or proceeding, unless such receivership or trusteeship shall have been vacated prior to the expiration of said 120 days, or unless:
(1) Such receivers or trustees shall have, within 120 days after their election or appointment, fully complied with all the terms and provisions of this chapter and the franchise granted pursuant hereto, and the receivership or trustees within said 120 days shall have remedied all the faults under the franchise or provided a plan for the remedy of such faults which is satisfactory to the grantor; and
(2) Such receivers or trustees shall, within said 120 days, execute an agreement duly approved by the court having jurisdiction in the premises, whereby such receivers or trustees assume and agree to be bound by each and every term, provision and limitation of the franchise granted.
(b) In the case of a foreclosure or other involuntary or judicial sale of the franchise property, or any material part thereof, the grantor may serve notice of termination upon the grantee and the successful bidder at such sale, in which event the franchise granted and all rights and privileges of the grantee hereunder shall cease and terminate thirty days after service of such notice, unless:
(1) The grantor shall have approved the transfer of the franchise, as and in the manner that this chapter provides; and
(2) Such successful bidder shall have covenanted and agreed with the grantor to assume and be bound by all terms and conditions of the franchise.
(Ord. 1999-54. Passed 9-15-99.)