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What Remedies are Available upon Termination or Nonrenewal of a Franchise in New York?

If you have invested in a franchise in New York, and at the time of renewal the franchisor refuses to renew the franchise agreement, there may be legal remedies available. In case of the nonrenewal of a franchise agreement, as a franchisee your legal remedies may include:

  • having the franchisor repurchase your inventory and other items;
  • payment for goodwill;
  • injunctive relief;
  • damages, including lost profits, unrecouped expenses, and punitive damages; and
  • compensation for the legal fees you have paid to your New York franchise attorney, or other legal counsel.

Under some of these laws, state authorities may seek criminal sanctions for the nonrenewal of a franchise.

Furthermore, in case of the nonrenewal of a franchise, a court may require the franchisor to compensate a terminated franchisee. This compensation may be beyond what is specifically referred to in the relevant statute.

Repurchase obligations after the nonrenewal of a franchise vary from state to state. These laws specify whether a franchisor must repurchase upon termination and nonrenewal, or just upon termination. These laws also state what must be repurchased, such as inventory, supplies, equipment and furnishings. If you have questions about your legal rights after the nonrenewal of a franchise, you can get the professional help of a New York franchise attorney.

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Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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