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On what grounds can a franchisor terminate the agreement it has with a franchisee?
Most, if not all, commercial agreements will contain the right for one or more of the parties to be able to terminate it in certain circumstances. Franchising is no different, as it will usually set out the circumstances in which the franchise agreement may be terminated - the exception being that in a franchise agreement it is only usually the franchisor who has a right to terminate the franchise agreement. The franchise agreement will almost certainly state that the franchisor may terminate the agreement in the event of the franchisee’s insolvency or material breach of the franchise agreement. However, the following are also common termination events that will allow the franchisor to terminate the franchise agreement if the franchisee:
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