Knowledgebase

Handling Franchise Disputes and Termination Print

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When the relationship fails.

WHAT DISPUTES TYPICALLY CONCERN

Support not provided Fees and their calculation Standards enforcement Territory encroachment Supply arrangements and pricing Renewal and transfer Termination

WHAT TO ESTABLISH

What the agreement actually says.

WHY

Positions are frequently argued on expectations rather than terms.

WHAT TO DO FIRST

Attempt resolution directly.

WHY

Formal proceedings are slow and expensive, and the relationship frequently continues.

WHAT TO ESTABLISH

What outcome each party actually wants.

WHY

It is frequently narrower than the dispute suggests.

WHAT TO DOCUMENT THROUGHOUT

Support provided Standards findings Communications Payments

WHY

Disputes turn on records.

WHAT TERMINATION REQUIRES

Grounds under the agreement Proper notice An opportunity to remedy, where required Following the process exactly

WHY EXACTLY

Improper termination is challenged and reversed, and it can produce liability.

WHAT TO TAKE

Legal advice, before terminating anything.

WHAT TO ADDRESS ON TERMINATION

Cessation of brand use Return of materials Outstanding payments Equipment and premises Customers and their information Restrictions on competing

WHAT TO EXPECT

That a terminated franchisee may continue operating independently.

WHAT TO ENFORCE

Post-termination restrictions, where enforceable.

WHAT TO ESTABLISH BEFOREHAND

Whether they are enforceable.

WHY

Overly broad restrictions are frequently unenforceable.

WHAT TO PROTECT

Customers and the brand, immediately.


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