Getting Out of Your Franchise
Maybe things have changed since you signed up for your franchise; maybe the franchise is not what it was then. Or maybe the business is no longer making money, and your franchisor is not willing, or able, to help you return to profitability. In that case, you may want to get out.
Can you get out of your franchise?
The phrase, “Breaking up is hard to do” usually applies to getting out of your franchise or dealer agreement. Most franchise agreements contain covenants not to compete that prohibit the franchisee from working in the same business at the same location – or near other franchised locations -- for a year or two. The franchisor may contend that you owe it the royalties that you would pay for the remaining years of your agreement.
Usually, the easiest way to get out of your agreement is to sell the franchise. But if you can’t sell it, then you have to look to other alternatives.
Your rights to get out of your franchise without selling it depend on the wording of the agreement, the practices of the franchisor and the history of your dealings with it. It also depends on what you want to do. If you intend to continue in the same business, it will usually be harder to get out than if you plan to do something else.
What is Michael Garner’s experience helping franchisees get out of their agreements?
Michael is an expert in franchise termination and has helped scores of franchisees get out of their agreements or change the terms of their agreements to make life with the franchisor more liveable. Please see our Case Studies page for more examples.
How can you help me?
If you wish to get out of your agreement, we will need to do a thorough review of your agreements and situation. Please contact us to review your rights and liabilities, so that we can help you achieve your goals.
Termination and Non-Renewal »
Fraud and Misrepresentation »
Breach of Contract »
Franchise Encroachment »
Franchise System Changes »
Buying a Franchise »
Getting Out of a Franchise »
Franchise Associations »
"Michael Garner first helped us get out of our franchises so that we could go independent. The franchisor then sued us for violating the non-compete in the franchise agreement. Michael went into court, defended us, and we won. We now have eight locations under our own flag.”
- Paul Amoruso, former Sona MedSpa franchisee
"After 2 years, I felt trapped in the franchise. I knew that I had made a mistake and wanted out but I didn’t know how this was going to happen. I was truly not sure if a lawyer could even help me. . . . I can say now that retaining Michael Garner was the smartest decision I made in 2 years. The results he achieved were better than what I had hoped, and Michael did not drag out the pain.
- Sandra Weintraub, Florida