This handbook covers all the essential topics you need to know about franchising your business.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n The termination clause may stipulate a notice period or further requirements during the termination process. Ensure you follow these requirements. <\/p>\n\n\n\n Termination is often tricky and emotionally charged as it involves taking the franchisee\u2019s business away from them.\u00a0You must follow the terms set in the contract and seek professional legal advice.\u00a0Otherwise, you can face legal disputes, which can be costly and may damage your brand\u2019s reputation.\u00a0A lawyer can help you to navigate this process.\u00a0<\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n
The franchise agreement<\/a> should be robust and protect you, your business, and the franchisee.\u00a0Ensure that you draft it clearly and include sufficient detail.\u00a0It is advisable to seek legal advice when preparing a franchise agreement, as it forms a foundational pillar of your franchise network.\u00a0<\/p>\n\n\n\n In some cases where a franchisee breaches the franchise agreement, the franchisor may terminate it.\u00a0You will specify the actions and inactions that can amount to a breach within the agreement\u2019s text.\u00a0A franchisee\u2019s breach of a franchise agreement can significantly affect your brand\u2019s reputation. Some common franchisee breaches include:<\/p>\n\n\n\n An experienced franchise lawyer can advise you on the action you should take in case of a breach.\u00a0It is advisable that you seek advice when you first notice a franchisee\u2019s breach.\u00a0\u00a0<\/p>\n\n\n\n Seeking professional legal advice ensures that the process of handling the breach begins and operates smoothly.\u00a0A lawyer can carry it out in a legally sound manner, which mitigates the risk of future legal disputes.\u00a0<\/p>\n\n\n\n If you find that the franchisee has breached the agreement, you will issue a notice of the breach to that franchisee.\u00a0The franchise agreement details what this notice should include. In the notice, you will tell the franchisee what agreement term they have breached and how long they must provide a remedy.\u00a0You will also attach evidence of their breach.<\/p>\n\n\n\n If the franchisee follows the notice of the breach and remedies their breach, you can continue your working relationship. However, if the franchisee fails to comply with the notice, you may have the right to terminate the agreement.<\/p>\n<\/div>\n\n\n\n Some circumstances may allow you to terminate the agreement.\u00a0You will include these within the franchise agreement.\u00a0\u00a0<\/p>\n\n\n\n Termination clauses set the conditions under which a franchisee<\/a> or franchisor can terminate the agreement.\u00a0Whether you can end the contract due to the breach depends on the termination clause\u2019s wording.\u00a0<\/p>\n\n\n\n Breach of contract is usually a condition under which a franchisor can terminate the agreement. If the franchisee fails to comply with the notice, you may be able to terminate.\u00a0At this point, you might speak to the franchisee to negotiate termination and what will happen to their business.\u00a0Or, you can issue a notice of termination if the franchisee is not open to negotiate<\/a>.\u00a0<\/p>\n\n\n \n
What to Do if a Franchisee Breaches the Franchise Agreement<\/h2>\n\n\n\n
1. Seek Legal Advice <\/h3>\n\n\n\n
2. Give Notice of the Breach<\/h3>\n\n\n\n
3. Terminate the Agreement<\/h3>\n\n\n\n
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