My clients pay my franchisor directly and after taking their royalty fee the remainder is sent to my franchise. Suddenly, the steady flowing, predictable income completely stopped. The franchisor claimed that my franchise owed them too much money, and the only option was to give them control over the franchise and take a salary job with them, which I refused. Any attempt to work out a payment plan was denied by them due to the amount of the debt. After several months of this issue, my franchise financially sank due to past-due bills. I would like to know if they can legally take all the company's earned income? This situation caused crushing debt and not having enough funding to continue operating even though the franchise was profitable.