If my franchise is terminated, what are my obligations as a franchisee?

A: When a franchise is terminated, the franchisee will typically have numerous obligations to fulfill, including the responsibility to follow non-compete agreements.

Some of a franchisee's obligations upon termination of their franchise include: 

• paying all amounts due to the franchisor;
• returning operations manuals and other proprietary materials;
• surrendering signs or sign faces;
• surrendering or destroying all materials bearing the franchisor's commercial symbols;
• canceling all assumed or fictitious name registrations;
• consenting to a transfer or cancellation of the telephone numbers, domain names and websites used by the franchise; and
• modifying the business facility's appearance, including construction and equipment, fixtures, signs and color scheme. 

In some cases, when a franchise is terminated, some franchisors will allow the franchisee to sell its business to a successor. The franchise agreement will specify the time period during which the franchisee may find a buyer, regulate business management and sell the franchise.

On the other hand, when a franchise is terminated, the franchisor might reserve the right to purchase the terminated franchise.

If you have questions about the obligations you must fulfill if your franchise is terminated, you can consult a New York franchise lawyer. A New York franchise lawyer can guide you throughout the entire process, and make sure the franchisor is not violating any of your franchisee rights.

Contacting a New York Franchise Lawyer 

If you are an entrepreneur who is interested in franchising your business there is a lot you need to know, including the significance of evaluating your trademark and how to approach the preparation of your Franchise Disclosure Documents. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's, franchise law report to determine whether your business is right for franchising. Contact us today at 800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs to franchise their business nationwide.

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