In re Herbert, aff'd 806 F.2d 889 (9th Cir. 12-16-86)

Franchisor twice gave termination notices for failure to pay. Franchisee filed for Chapter 11 two days before effective date of termination. Bankruptcy court allowed franchisee's assignment of franchise, finding that the termination was not effective under state law and it was unreasonable for franchisor to disapprove assignment. Also, franchisee had right to cure default under state law even if franchise terminated. District court vacated and appellate court affirmed finding that since franchise had been terminated, it could not be assigned.