Franchise agreements usually have a fixed term and an expiry date. In other words, they are finished and do not extend automatically, unless the terms of the franchise agreement allow it. In order to renew the franchise agreement and prevent the franchise relationship from ending abruptly, you must closely follow the procedures set out in the terms of the franchise agreement. For a franchisee, the renewal or renewal of their existing agreement allows the franchisee to continue to operate the business, maintain their good and, when the time comes, sell their business and/or transfer their rights, hopefully, for a reasonable return. Written notification – Franchise agreements generally require the franchisee to indicate in writing to the franchisee that the franchisee wishes to extend the or before a certain period of time, for example. B the franchisee must terminate in writing between six months and one year before the renewal. For example, instead of waiting for the expiration of the original term of the franchise agreement to negotiate the renewal terms, we advise you to negotiate some of these terms if the franchisee signs their first franchise agreement (that is, instead of accepting the signing of the current form of the franchise agreement, try to negotiate the right to maintain certain terms identical during the extension). Instead of waiting until the franchisee is not renewed and has ceased operations to challenge the franchisee`s decision not to extend, we recommend that a franchisee take action upon receipt of a non-renewal notification or delay announcement and see what can be done to change the franchisee`s mind.
Tue Sep 21 , 2021