shutterstock.com When Do Franchisee Actions Justify Termination? Can the Violations Be Cured?
A look at the standard for termination or non-renewal of a franchise agreement; whether a franchisee can preempt same by curing any identified violations; and best practices a franchisor should implement to strengthen a termination or non-renewal decision.
May 27, 2021 at 02:00 PM
10 minute read
Corporate Entities
The New Jersey Franchise Practices Act (NJFPA) contains various provisions protecting the rights of franchisees in New Jersey. Among other things, the NJFPA includes some of the strongest language in any state statute nationwide regarding the circumstances under which a franchisor may terminate a franchisee or decide not to renew a franchise agreement. In this article, we discuss the standard for termination or non-renewal as well as factual circumstances in which courts have upheld those decisions. We then discuss whether a franchisee faced with the termination or non-renewal can preempt same by curing any identified violations. Finally, we present some best practices a franchisor should implement to strengthen a termination or non-renewal decision.
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