Should a franchisee fail to meet the terms of a franchise agreement, the franchisor may want to
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Should a franchisee fail to meet the terms of a franchise agreement, the franchisor may want to terminate the agreement early to avoid damaging the reputation of the entire franchise system or to recover the trust of its customers. The default and termination provisions of the franchise agreement set out both curable and non-curable acts or omissions and the mechanism for giving notice to the franchisee to effect termination. What effect would a change in the law that restricted the ability of a franchisor to terminate a franchise agreement (for example, by extending the period in which a franchisee may cure a failure) have on production efficiency and risk bearing?
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