franchise termination fee

franchisors may seek to terminate a franchise agreement for cause based on a franchisee’s non-compliance with the franchise agreement, whereas franchisees are not typically granted but a whisper of a termination right and almost never is termination “for convenience” or for lack of earning an anticipated return permitted. if it is profitable) and how long the franchisee can wait to terminate the agreement, finding a buyer for the franchised business is often the best exit strategy because it allows the franchisee to recoup some, all, or more than its investment. alternatively, if an exit-via-sale is not feasible for whatever reason(s), and the franchisor is uninterested in reacquiring the franchised business, the franchisee should seek to negotiate an exit via mutual termination of the franchise agreement.