It is easy to be extremely optimistic when you purchase a franchise. For every smiling, successful franchisee you see in the company’s marketing materials, there likely are franchisees who do not feel they are living the dream.
What if you become one of those for whom things did not go so well? Can you just transfer ownership to someone else or close shop and call it a day? Or return the branded material and supplied goods and run your store on your terms? Probably not.
If you feel you could make things work if the franchisor relaxes some restrictions, then talk to them about it. It is in both your interests to succeed. If adjustments are not possible, you may need to look at how to terminate your agreement.
Read your contract
Hopefully, you negotiated favorable termination terms when you signed your franchise agreement. Reread the termination terms now, because you do not want to commit a breach that could add to your costs.
Determine if the franchisor upheld its side of the deal
If you feel the franchisor let you down in some way and breached the agreement, it might give you the leverage you need to exit without penalty.
Getting legal help to review your contract and explain your options will be crucial if you wish to leave a franchise that has not worked out as you hoped. Without proper legal advice, you could severely restrict your ability to start fresh in the future.
NOTICE: This blog is intended solely for informational purposes and should not be construed as providing legal advice. Please feel free to contact us with any questions you may have regarding this blog post.