The possibility of dismissing an employee without notice because he or she is suspected of a crime (ie, ‘dismissal on suspicion’)
has long been acknowledged in German employment law. Furthermore, the principles developed on this subject in the relevant case law have long been applied to recurring contractual relationships in other areas of law. However, until recently the higher courts had not ruled on the application of the principles of dismissal on suspicion to franchising.
On November 13 2009 the Frankfurt am Main Higher Regional Court delivered a decision which constitutes the first time that a higher court has taken a position on the validity of termination of a franchise without notice based on the suspicion of a crime. The court ultimately affirmed the termination.(1) Read more.