Procedural Requirements for Termination of a Franchise (Part A)

If you have sold a franchise in New York, and have found good cause for the termination of that franchise, you will have to follow certain procedural requirements. Procedural requirements for the termination of a franchise include:

• giving written notice of the termination within a required number of days in advance;
• including in the notice all the reasons for termination;
• including in the notice how much time, if any, the franchisee has to cure the default; and
• continuing to comply with the franchisor's obligations throughout the notification period.

Different U.S. states have different rules regarding the termination of a franchise. For instance, Iowa requires that at least 30 days be allowed to cure a default, while other states have no such requirement. To know which laws apply for the termination of a franchise in New York, you can get the professional advice of a New York franchise lawyer.

Interpretations of Procedural Requirements

Below are some interpretations of the procedural requirements for the termination of a franchise.

Complying With Notice Requirements

During the termination of a franchise in New York, failure to comply with the notice requirements may constitute a violation of the law, even if the franchisor has good cause for termination. If a franchisor does not give the required statutory notice-if one applies-they may be required to reinstate the relationship with the franchisee and give any required statutory notice.

Franchisor Compliance During the Notice Period

When proceeding with the termination of a franchise in New York, a franchisor must continue to fulfill their business obligations during the notification period. A refusal to do so may be a violation of the franchise relationship law.

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