What does "nonrenewal" of a franchise mean?

A: If you are in the business of selling franchises, there will come a time when you must renew the franchise agreement with your franchisees. However, if you don't want to renew a franchise agreement, there are laws to restrict you from refusing to do so. In such cases of the nonrenewal of a franchise, your ability to refuse will depend on the state where your franchise agreement is held.

For instance, franchise relationship laws in Delaware, Hawaii, Iowa, New Jersey, Rhode Island and Wisconsin require good cause for the nonrenewal of a franchise. Iowa requires 6 months notice of your intention not to renew (unless both parties agree to the nonrenewal).

Some states, such as California, permit nonrenewal of a franchise in certain cases. California permits nonrenewal upon 180 days notice for specified reasons, such as the failure by a franchisee to agree to the standard terms of the renewal franchise. In Connecticut, the franchisor is allowed to not renew the franchise if the franchisor sells the premises on which the franchise is located, or converts it for another use.

In any case, if you are interested in the laws regarding the nonrenewal of a franchise, it is best to get the professional advice of a New York franchise attorney. A New York franchise attorney can research the laws of any state and inform you of your options for nonrenewal of a franchise under a variety of circumstances. 

Contacting a New York Franchise Attorney

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 attorney 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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