The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
Close
In what circumstances can a franchisor terminate the franchise agreement?
The circumstances in which a franchisor can terminate a franchise agreement should be set out clearly in a specific section in the franchise agreement. The franchise agreement will specify the procedure that the franchisor has to follow if it wants to terminate the agreement. These are usually split between those breaches that can be remedied within a specified time period and those considered to be so fundamental that they will lead to immediate termination of the agreement.
Where a breach has occurred that is capable of remedy, for example, a failure to pay monies to the franchisor on time or provide a financial report when specified in the franchise agreement, the franchisor will give the franchisee written notice of the breach, which will set out the period of time within which the franchisee has to remedy the breach. If the franchisee fully remedies the breach (for example, pays all monies that are outstanding or sends in the missing report) the franchisor will not have the right to terminate the agreement at that time. If the franchisee does not fully remedy the breach within the time specified in the written notice, the franchisor will have the right to terminate the agreement, which will be done by a further written notice to the franchisee confirming that the franchise agreement has been terminated.
Where a franchisee is in breach of a provision of the franchise agreement that leads to immediate termination, the franchisor will be able to terminate the franchise agreement by sending written notice to the franchisee. The kind of breach that would lead to immediate termination would be the insolvency of the franchisee, where the franchisee reveals the confidential information of the franchisor or where the franchisee carries on a competing business.
You might also be interested in
Answered by Vincent Anthony
Vincent Anthony writes: The property market has wide appeal because it is relevant to everyone: we all... read more
Answered by Louise Harris
Louise Harris writes: Richness or wealth is relative. We always want more, I guess. So, what is... read more
Answered by Shelley Nadler
Shelley Nadler writes: A concern that businesses may have when deciding to franchise their business, is the... read more
Answered by Alan Wilkinson
Alan Wilkinson writes: There are two elements to consider here. First is the franchise fee itself, and... read more
Exciting Franchise Opportunities
Start your own Kaspa’s Desserts franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to Kaspa’s Desserts for further information!
Start your own Chicken Cottage franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to Chicken Cottage for further information!
Start your own Post & Packing franchise
Yes
Find Out More265,000
Request Free Information
Send a free enquiry to Post & Packing for further information!
Start your own Fun Fest for Children franchise
Yes
Find Out MoreFrom £30,000
Request Free Information
Send a free enquiry to Fun Fest for Children for further information!
Start your own Amorino UK franchise
Yes
Find Out MoreN/A
Request Free Information
Send a free enquiry to Amorino UK for further information!
Companies to Consider
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
-
How is the car rental franchise landscape developing for Drivalia?
Added 4 days ago | 2 min read
-
Industry Analysis: The UK children’s services franchise sector in 2024
Added 6 days ago | 2 min read
-
Why does Mail Boxes Etc. work as a franchise business?
Added one week ago | 2 min read
Franchises by Minimum Investment
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
-
Under 10k
Starting a franchise doesn't have to be costly
Click here -
Under 20k
A mid-range investment for the more experienced
Click here -
Over 50k
If budget is not an issue, then don't miss these.
Click here -
Local Franchises
Find the perfect franchise in a location to suit you
Click here
What Franchise Newsletter
Keep up to date with all the industry news