Did your franchisor suddenly terminate your franchise agreement without giving you the required 30-day minimum written notice? Under the Franchise Rule, the franchisor is required to give a minimum of at least 30 days, in written form, before terminating a franchise agreement. Franchise lawyers can help you determine if the termination was unlawful. Protect yourself against an unlawful termination.
Perhaps you're suddenly faced with the franchisor's decision to not renew your franchise agreement, and you don't know what to do because you'd like to keep your franchise. Again, franchise attorneys can shed light on cases such as these; and determine if you do have a case that you can file against your franchisor.
The Franchise Rule: Brief Overview
Under the Franchise Rule, unless the franchisor can present proof of "good cause" for terminating a franchise agreement, terminating said agreement is considered unlawful. Additionally, if the franchisee was not provided with a written notice that clearly sates the reasons for termination and giving 30 up to 120 days before it takes effect, this is also considered illegal.
The number of days given to the franchisee is determined by State laws, and is the given timeframe to allow the franchisee to cure the default. In other words, the grace period indicated in the termination letter is the time provided for the franchisee to work on violations that the franchisor deemed were committed.
Reviewing the Franchise Agreement
When you present your case to franchise lawyers, they will ask to see your contract with the franchisor. They will have to review the agreement because there could be details and technicalities in the contract that you didn't see.
Certain states also have specific laws governing franchises, and a franchise attorney is more knowledgeable about these laws. This is why seeking their help is recommended to see if you have a case or not.
For non-renewal, unless it is clearly stated in the franchise agreement, the franchisor may be held liable for refusing to renew the contract. However, there could be holes in the contract that could protect the franchisor from liability. A phrase or a sentence in the contract that slipped your attention may allow the franchisor to refuse to renew. In this case, your franchise lawyer will be able to determine if there is a way for you to still renew the contract, or if not, what remedies should be given to you to compensate for the non-renewal.
To get you started, contact franchise lawyers at Goldstein Law Firm. If you'd like to avail of free consultation, complete the Free Consultation form and submit.