Frequently Arising Issues In Litigation – Handling Defaults and Terminations Effectively and Lawfully

by C. Griffith Towle (co-author)

May 2006 – Issuing a default or terminating a franchise are serious matters. From the franchisor’s perspective, it is essential that its franchisees comply with their responsibilities under the franchise agreement (e.g., paying royalties and the like) and that it take all appropriate steps to protect the brand. From the franchisee’s perspective, the franchised business is often his/her sole or principal source of income. From either party’s perspective, issuing a default or terminating a franchise are likely to have far-reaching consequences. For this reason, it is important that a franchisor carefully consider the pros and cons before issuing a default or terminating a franchise.  View a pdf copy of the article.