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What You Should Know About a Franchise Renewal

Franchise renewal refers to a franchisees renewal of the franchisee's right to continue to operate a particular franchised business. Franchise agreements typically contain "terms" (i.e., the period granted to franchisee to establish and operate a franchise) that typically range from 5 to 15 years with a franchise term of 10 years being the most common. When the initial term expires franchisees typically possess certain rights to "renew" their franchise.

Franchise rights related to a franchise renewal are addressed and set forth in the franchise agreement and, in certain instances, depending on the state where the franchise is located may be supplemented by local state law such as the New Jersey Franchise Practices Act.

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