What are some of the potential issues I will face as a franchisor in regards to perpetual agreement?

A: A franchisor generally may not terminate a franchise agreement without having good cause for doing so. Good cause may be interpreted as the failure to remedy a breach in the formal franchise agreement. Therefore, in order to terminate a franchise, a franchisor must show in court that they have good cause for termination.

Many people refer to this law as the perpetual agreement issue, because it seems to legally ensure the perpetuation of the franchise agreement. This law can have serious legal and logistical implications for business franchisors. This is because while a franchisee may be causing damage to a franchisor's goodwill, the damage cannot be stopped through termination without a court's approval, in most cases.

For instance, if a franchisee has let their franchise fall below a company's standard, this may cause significant damage to the company's trademark and brand name. But because of an inability to threaten the franchisee with termination of the franchise, the franchisee may continue this behavior until a court intervenes.

In cases of termination as the result of a breach of the franchise agreement, a court will place the burden of proof upon the franchisor. This can be difficult, costly and will generally require experienced legal representation. Therefore, if you need to show good cause to terminate a franchise in New York, you should get the help of a seasoned New York franchise lawyer. A New York franchise lawyer can investigate the breach of your franchise agreement and can build a case to show grounds for the franchise's termination.

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 FDD. For a limited time, get New York franchise lawyer Charles N. Internicola, Esq's franchise law report to determine whether or not your business is right for franchising. Contact us today at 1-800-976-4904 for more information about Mr. Internicola's franchise law services in New York and how he assists entrepreneurs franchise their business nationwide.

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