Sample Franchise Agreement Termination Letter

If the transaction is not resold, the franchisee should enlist the help of the franchisor to try to recover as much as possible his investment (store equipment, signage, warehouse, etc.). Once the business starts, it can be very difficult to terminate the contract without being responsible for the current licensing fee. A competent candid lawyer or consultant can help franchisors and franchisees properly terminate a franchise. Talk to an experienced business lawyer before you try to terminate your franchise agreement. A good lawyer can help you navigate the sometimes delicate legal waters of resignation. I have received notice If you have received notice, seek advice from an experienced franchise lawyer as soon as possible. Breach Termination A franchisor may terminate your franchise agreement if you have breached the franchise agreement and the franchisor has provided you with a valid infringement notice; The franchisor has given you a reasonable period of time to correct the violations; and you did not correct the violations within the time frame indicated in the injury notification. The Franchise Code of Conduct stipulates that a franchisor must not give a franchisee more than 30 days to remedy the infringement. If you have received a franchised infringement notice that requires you to correct the violation over a period of less than 30 days, you must first check the terms of your franchise agreement to see what the period of the franchise agreement is.

If the duration indicated under the franchise agreement is less than 30 days or if the franchise agreement repeats the code text that “the franchisor must not provide more than 30 days” (and the communication on the breach of the franchise is in accordance with the franchise agreement), it is necessary to check whether the corresponding period is appropriate. Factors to consider in assessing reasonable time are: the nature of the injury; If you have received prior notification of the nature of the offence; if the offence involves unpaid funds, if you have had time to pay the remaining funds before the notification is issued. Termination If you have not breached the franchise agreement A franchisor may terminate your franchise agreement if the franchise agreement allows the franchisor to terminate the franchise agreement in certain circumstances and one of these circumstances has occurred. For example, if the franchise agreement requires that you obtain a visa and have not been able to obtain the visa, or if the franchise agreement requires you to complete the training to the satisfaction of the franchisor, and you have not done so. Immediately in special circumstances, a franchisor may immediately terminate your franchise agreement under certain specific conditions of the code and franchise agreement, even if you no longer have a license that you need to hold to continue the franchise business; You are bankrupt or insolvent under administration; You are disconnected (if you are a business) You are acting fraudulently in connection with the operation of the franchise business; You voluntarily renounce the franchise or the franchise relationship; they are convicted of a serious offence; or you operate franchises in a way that endangers public health or safety. An experienced duty-free lawyer can advise you on the options available to you. For example, not all notifications of termination of franchise dates are valid. If a notice of termination of franchise does not comply with the provisions of the Franchise Code of Conduct and/or your franchise agreement, the notification of termination of the franchise may be invalid.