Maybe I'm missing something, but isn't this more criminal?

BAM / new franchisee claims that any consignment deal is null and void after their takeover. If they knowingly possess items that therefore do not belong to them legally (because they were never owned by the previous franchisee), is that not theft (and therefore criminal behavior)?

Like imagine the previous franchisee left their phone in the store. Then the new owners say "nah, it doesn't belong to me". But actually it does. That is theft.