Our Practices

Dedicated to serving the legal needs of municipalities, franchised businesses, employers, and public utilities.  

Franchise Defaults and Terminations

Under the franchise agreement, there are generally two ways in which the franchisor-franchisee relationship can end: (i) the franchise agreement can naturally expire after the agreed upon term length, or (ii) the franchisor (in most cases) or franchisee can terminate an agreement for a material breach of contract. The latter is most often initiated by a franchisee’s failure to comply with the franchise agreement terms. These are difficult situations in the franchisor-franchisee relationship.

Many states have franchise relationship laws that establish the guidelines and requirements for franchise agreement termination, such as required notices and cure periods. When termination is inevitable, you need experienced legal counsel with the expertise to handle these types of delicate situations. Our attorneys have significant experience in handling franchise terminations on behalf of franchisors. A thorough evaluation of the franchise agreement as well as a review of applicable state relationship laws will enable us to prepare the appropriate Notice of Default to properly terminate a franchisee. Early intervention by our franchise attorneys can help facilitate a smooth termination process, while limiting your liability.

We can also guide you on avoiding liabilities as you enforce your system standards and grow your brand—but should the need arise, we can protect your interests against legal claims brought by franchisees. Our attorneys have extensive experience regarding allegations of wrongful termination, injunctions seeking to prevent termination, and enforcing post-termination contractual obligations.

Is your business ready to franchise or expand?

Whether you are exploring franchising for the first time or operating a well-developed franchise system, our franchise attorneys can answer your questions and advise you on the best course of action.

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At Fahey Schultz Burzych Rhodes PLC, we’ve been helping municipalities, franchised businesses, employers, and more with their legal needs since 2008. We’d love to learn how we can help you, too.