Exiting a Franchise Relationship

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 seen for the failure of franchises;

  • support and assistance by franchisors
  • location of the franchise is not suitable
  • franchisee expectations not met / misrepresentation (failure to comprehend the effect of the franchise agreement)
  • training of franchisees by franchisors

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