Usually, franchise agreements do not contain any right of termination by a franchisee, The ability to terminate is only a very limited one. Every situation is different, and great care needs to be taken not to act with haste and to consider all relevant facts. If the agreement can be successfully terminated, then there is […]
Failed franchisees are not what any franchisor wants, but franchises fail and things go wrong. When this occurs, it is commonly the franchisee who suffers the most because the rights of the parties fall back on what is in agreement and franchise agreements offer very little protection for franchisees. There are multiple reasons I have […]
It is a characteristic of franchise agreements that they are top heavy on franchisee obligations and light on franchisor obligations. Having the ability to draft the franchise agreement enables franchisors to cast franchisor obligations in largely discretionary terms and, conversely, the franchisee’s role as a set of non-negotiable cast iron obligations. Many franchisees, when disaffected […]
When acting for franchisors, I frequently find myself giving the advice to tread carefully when terminating a franchise agreement. Where there is a significant amount of value in the franchisee’s business, no franchisee is going to stand back and allow the termination to proceed without a fight. If there is any element of dispute around […]