The termination of a franchise agreement is an issue that most franchisees hope they will never have to face. However, this is a reality which many franchisees encounter at some point during their tenure.
In this article, I explore some of the common grounds for termination of franchise agreements, the termination process and the protections for franchisees under the Franchising Code of Conduct.
Common grounds for termination
The most common grounds for termination of a franchise agreement involve the franchisee failing to pay moneys due under the franchise agreement, for example fees/royalties to the franchisor or rental payments to the landlord. These liabilities are amongst the major overheads for the franchise business, and it can be easy for franchisees to fall into arrears when money is tight.Read more.
