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Under what circumstances can I terminate a franchise agreement?
The simple answer to this question is that it depends on what the particular franchise agreement says, but in reality, under most franchise agreements, a franchisee usually has extremely limited rights to terminate their franchise agreement.
Typically, a franchisor will have a right to terminate the franchise agreement for many reasons - from the franchisee’s breach of an obligation to the franchisee becoming insolvent. While a franchisee can try to negotiate reciprocal rights of termination, how successful he will be ultimately depends on his bargaining power, which in most instances is limited.
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