Incurable Defaults and “Good Cause” Requirements

by C. Griffith Towle (co-author)

May 2010 – Many franchise agreements contain provisions allowing the franchisor to terminate the agreement without affording the franchisee an opportunity to cure.  These sections are typically reserved for egregious breaches, and the commission of one of these breaches by the franchisee constitutes an incurable default.  However, some states prohibit a franchisor from terminating a franchise agreement without “good cause.”  View a pdf copy of the article.