It is not uncommon for disputes to arise between a franchisor and a franchisee. If a franchisor and franchisee are unable to resolve their issues and disputes, a franchisor may wish to terminate the franchise agreement of the franchisee. Prior to deciding whether or not to declare a default and terminate a franchise, the franchisor should carefully review the specific terms and provisions of the franchise agreement related to events of default and termination. The franchisor needs to know whether or not the franchise agreement:
- Mandates advance notice to the franchisee prior to termination
- Requires an opportunity for the franchisee to cure the default, and, if so, the length of the applicable cure period
- Requires the franchisor to perform during any applicable cure period