Termination and Non-Renewal

Getting a notice of termination or nonrenewal from your franchisor or supplier may be the worst event in the life of a franchisee or dealer. If you are threatened with termination or nonrenewal, please read on to see how, as franchise lawyers, we can help you avoid what might be a disaster.

What is a Termination or Non-Renewal?

Termination is the franchise equivalent of losing your job. If you get terminated or non-renewed, you lose your business. Most franchise agreements contain clauses that prevent you from working in the same business for a period of time after termination – so your ability to make a living after termination may be severely limited.

What are your rights?

Depending upon a number of factors -- where you live, what your contract says, what business you are in and your particular circumstances -- you may have rights to stop a termination from taking place, to continue in the same business even if you are terminated, or to obtain damages if you’ve been terminated wrongfully.

What experience does Michael Garner have with Termination and Nonrenewal?

As a seasoned franchise and dealer lawyer, Michael Garner has stopped terminations and non-renewals all over the country in virtually every segment of franchising. In one jury trial, he proved a test case that led to a settlement of termination damages totaling $232 million for a group of franchisees. Sometimes, franchisors will come to the bargaining table and work out a settlement as soon as they get a call from him.  See our Case Studies for more information »

How can we help?

If you have received a termination notice; if you are facing non-renewal; or if you believe that your franchisor or supplier may be setting you up for a termination or non-renewal, you should act quickly. We may be able to stop that termination or get you compensation! Give Michael a call or click here to contact him. We’ll see if you have a case! In the meantime, check out our Resource Center page to get a head start!

Frequently Asked Questions About Termination and Non-Renewal:

  • Q. Who are some of the franchisors that Michael Garner has stopped from terminating or non-renewing franchises?

    A. A sampling includes KFC, Wendy’s, Terex, Lund Boats, John Deere, GCO Carpets, Ford Motor Co., Hardee’s, Sona Laser Centers and Bruegger’s Bagels.

  • Q. What should I do if I’ve gotten a notice of default or a termination letter?

    Act fast!  Your rights depend on many, many different factors – your contract, where your business is located, and the circumstances of your particular situation.   The sooner you get good legal advice, the sooner you can take action to stop a termination or non-renewal.

    Q. My franchise agreement ends soon and the franchisor tells me they are not going to renew it.  What can I do?

    A. Under the law in some states a non-renewal can be the same as a termination.  Depending upon where you are and the circumstances of your situation, you may be entitled to continue with your franchise or dealership.

    Q. My franchisor is making life rough on me – increased inspections, nitpicking my performance, making me toe the line on contract matters.  Does this mean they are getting ready to terminate me?

    A. Depending on the circumstances, it could.  You need to have an experienced franchise lawyer review the circumstances carefully to determine your rights.

    Q. I got a notice of termination, and the date for termination has already passed.  What are my rights?

    A. You may be entitled to damages if the termination was wrongful.

    Q. My franchisor just got acquired by a Wall Street investment banking firm.  They say that they are not going to be franchising any longer and will not be renewing my agreement because it doesn’t fit their business model.  Can they do that?

    A. In most cases, a franchisor needs to have “good cause” to terminate or refuse to renew a franchise.  Good cause usually means that you, the franchisee, are at fault.   The franchisor’s decision to change its business model is usually not “good cause.”

 

 

More About our Expertise and Services

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 »

 

“When our supplier tried to refuse to renew our dealer agreement, Michael Garner took charge and filed suit.  The lawsuit stopped the non-renewal from going forward, and we were able to sit down with the supplier and work things out.” 

- Chad Hall, Algona Marine

 

 

 

 

 

 

 

 

 

 

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