(A) A franchise granted hereunder shall, at the option of 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 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 the 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 receivers or trustees within the 120 days shall have remedied all the defaults and violations under the franchise and/or this chapter or provided a plan for the remedy of such defaults and violations which is satisfactory to the grantor; and
(2) Such receivers or trustees shall, within the 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 and this chapter.
(B) In the case of a foreclosure or other judicial sale of the franchise property, or any material part thereof, grantor may give notice of termination of any franchise granted pursuant to this chapter upon grantee and the successful bidder at such sale, in which the event the franchise granted and all rights and privileges of the grantee hereunder shall cease and terminate 30 days after such notice has been given, unless:
(1) Grantor shall have approved the transfer of the franchise in accordance with the provisions of the franchise and this chapter; and
(2) Such successful bidder shall have covenanted and agreed with grantor to assume and be bound by all terms and conditions of the franchise.
(Ord. 836, passed 6-23-97) Penalty, see § 10.99