I see debt people

What happens when a struggling/new/ambitious franchise executive/majority shareholder says to their franchisees:

“Boys, we decided you’re employees, not franchisees.

The bad news is that you’re all terminated as franchisees in 91 days.

The good news is that we’ve decided to let you re-apply for your route jobs.”

What exactly happens to those franchisees who are up to their eye balls  in debt?

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