Termination comes as a result of the Franchisor ending your agreement before the term called for in the Franchise agreement. Non-renewal occurs if the franchisor refuses to renew the franchise at the end of the term. In either scenario the end result is the same, the Franchisee is out of business. A franchise attorney can help you solve all your issues and queries related to the termination.
Possible Causes of Franchise Termination
Under New Jersey Law the franchise relationship law requires good cause for non-renewal by the franchisor. A de facto a non-renewal might occur if the franchisor imposes unreasonable changes in the royalties, fees and terms of the franchise, where the changes make it so the franchisee is unable to renew.
In New Jersey, a franchisor must have good cause to terminate or to refuse renewal of the franchise. Good cause includes failure by a franchisee to cure a breach of the Franchise Agreement within a reasonable cure period after written notice of default. The agreement may provide for certain non-curable defaults which may allow for termination immediately upon written notice. Common breaches include the non-payments of franchise fees, failure to meet sales, damage to franchisor reputation. In addition, it also includes sales of competing products and under reporting of sales.
Steps to Take if you Receive Franchise Termination
If you receive a notice of a possible termination or non-renewal you need to address the notice and be proactive. For example, if the business is closed you will not have the monies flowing from operation of the same to pay for your legal battle. Furthermore, it easier to keep the doors open than it is to reopen them once closed. As soon as you get the notice, contact your business lawyer to get channels of communication flowing in order to address the issues. If you have a Franchise issue or question call our Commercial or Franchise Lawyers today.
Riviere Advocacy Group has a team of experienced franchise agreement termination lawyer in New Jersey. Therefore, we can guide you easily related to the franchise issue. Contact us at (732)646-5529 or fill the contact form to book your free consultation with our lawyer.