Home     Law Advice     Insurance Advice     Community    
        View All Law Topics        Free Case Review        Legal Resource Directory        FreeAdvice Answers       
Home > Law Advice > Franchise Law > Agreement Terminated
Franchise Law
  All States      
Can the franchise agreement be terminated or not renewed?

This generally will depend on what the franchise agreement you signed says, whether or not you have complied with it, and whether the franchiser did all that it had promised to do in the agreement.

At the outset, franchisers generally have the right to choose the parties they wish to do business with and may use their own judgment in entering into a new franchise relationship. After the period covered in the franchise agreement, and subject to your rights to renew, you will be in a negotiating session with the franchiser over extending the franchise.

If you have failed to comply with the agreement, you can expect that the franchiser will not be pleased about the prospect of having you continue with the arrangement. In fact, even before the original term is over, the franchiser may seek to terminate your franchise – as a McDonald's franchisee who starts selling Sushi would soon find out.

Depending upon the appropriate state law, a franchiser may have the right to terminate a franchise or to refuse to renew a franchise for "good cause" – such as failure to meet sales quotas or lack of quality standards. Many contracts are drafted in such a manner that it is probable that a franchisee would breach it at sometime allowing the franchiser to cancel the contract or not renew it. Some state statutes require specific conditions, such as failure to meet monetary obligations, correct defects, or quality standards, for termination or for non-renewal. Other states also require special notices within certain time periods be provided to the franchisee before termination or non-renewal.


Related Information
» General Franchise Questions
» Evaluating opportunity
» Franchise agreement
» Franchisor
» Government Regulation
» Offering circular
» Solving problems
» Termination

Topics Related To Franchise Law
» Business Law
» Corporations
» Franchise Law
» Partnerships
» Starting A Business
» Trade Regulation




» Ask a question in our legal forum

» Search our legal resource directory

» Find an attorney in your area

» Let us find a lawyer for you




HACKER SAFE certified sites prevent over 99.9% of hacker crime. State Law Center  |  Legal Resource Directory  |  Legal Articles  |  Insurance Advice and Quotes  |  FreeAdvice Answers  |  Community Forums
Media  |  Privacy Policy  |  About Us  |  Contact Us

FreeAdvice® has been providing millions of consumers with outstanding legal and insurance information and general advice, free, since 1995. While not a substitute for personal advice from a licensed professional, FreeAdvice is available AS IS, subject to our disclaimer and conditions of use.
FreeAdvice®, AttorneyPages®, ExpertPages® are registered trademarks and units of Advice Company.
All Rights Reserved © 1995-2009