Whether you are a franchisor or a franchisee, proceeding with a franchise agreement termination requires specific notice and specificity as to the basis for the alleged breach that your claim. At this stage it is critical to consult with an experienced franchise attorney who will review the franchise agreement and prepare the proper notice. Consider that when terminating a franchise agreements, generally, there are two types of breaches comprised of "curable breaches" and "uncurable breach". A curable breach is one where you must give the other party notice and an opportunity to cure the breach. Only after the opposing party fails to timely cure the breach could you claim that the franchise agreement is terminated. Uncurable breaches that constitute grounds for the immediate termination of the franchise agreement.
What is or is not a curable or incurable breach will be determined by the particular franchise agreement but, generally examples of incurable breaches include:
In a case where a breach cannot be cured within the required amount of time, a court may issue an injunction to prevent the termination of a franchise. A franchisee’s reasonable steps to rectify the breach may be deemed adequate to avoid termination. For franchisors it is important that you be detailed in your termination notice and you afford the franchisee (where appropriate) an opportunity to cure – otherwise a court will enjoin the termination if it is challenged. If you are a franchisee and you are faced with a termination then it is important that you act promptly to evaluate your legal options.
Franchising may be the next big step for someone who wants to grow their business. Below are questions you should ask yourself to be able to answer if you should or shouldn’t franchise your business. How do you know whether or not you should franchise your business? First, you have... read more
In this guide you’ll learn the basics of franchising, how to franchise your business, and how to win at franchising. We’ll also take a deeper dive into legal requirements for franchising and why they matter, steps to take before and after you launch your franchise, and even some tips on... read more
When considering expanding a business both franchising and licensing are possible options. In this guide, you'll learn the differences of franchising and licensing and understand how each will affect you. read more
Are you a successful business owner? Are you looking for ways to expand your business? If so, this article will provide the answers you need to decide whether franchising your business is the right step for you. In short, franchising allows you, the franchisor, to create a relationship among several... read more
Under federal law, prior offering or selling a franchise in any state, franchisors are required to disclose a franchise disclosure document (FDD) to their prospective franchisees. In addition to federal law certain states, including the franchise registration states, require that franchisors register their FDD with the state. The legal documentation... read more
For very good reasons, the questions of “is my business franchisable?” and “can my business be franchised?” come up often. Assuming that you possess the right mindset and franchise goals (a topic that we discuss in a separate article) there are core franchise factors that either your business must possess... read more
Key strategies to accelerate franchise growth for startup and emerging franchisors In this webinar, franchise attorney Charles Internicola and Nick Powills, founder of No Limit Agency and 1851 Franchise, discuss key strategies to accelerate franchise growth through PR and digital media. Some topics include: Steps franchisors should take when it... read more
One of the biggest issues for emerging franchisors is not having a plan for insurance and system-wide protection. What do emerging brands need to know when they're starting off, who should they rely on, and how can they plan ahead? Get an insurance game plan to protect your franchise system... read more
Key strategies for developing the right logo & trade dress to drive franchise growth with branding and design expert Dan Antonelli. Dan is the author of ‘Building a Big Small Business Brand’ and is the creative director of the branding firm KickCharge Creative. Learn how to drive franchise growth and... read more
With services to make your growth strategy simple, cost effective, and with a team excited to help you, let’s talk about how we can help grow your business.
Fill out the following form and we’ll contact you as soon as possible. To reach our team directly, give us a call at (800) 976-4904.