Ryan is an attorney and valuation specialist residing in Chicago. He chronicles his thoughts and research on FranchisePundit.com. You may reach him by email ryanknoll@gmail.com or mobile telephone 312-212-3423.
Fair Franchising Is Not An Oxymoron: AAHOA’s 12 Points of Fair Franchising
Looks good and worth a read to understand the legal aspects of the franchise agreement. Point 1 is discussed in this articles, which encompasses:
A. Voluntary Buyout or Involuntary Termination and Liquidated Damages
B. Windows Provisions
C. Early Termination for Underperforming Properties
Here is sample analysis on windows provisions:
In franchise agreements containing “windows” or “additional termination right” provisions, the types of “gotcha” clauses that are most unfair are those that explicitly state a franchisee’s rights will automatically terminate, without notice, (1) the franchisee fails to cure any default under the franchise agreement within the time permitted, if any, in the notice of default sent by the franchisor, or (2) the facility receives a poor score on a QA inspection, and then does not receive a higher predetermined score set by the franchisor during a re-inspection of the facility.
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- Entire Agreement
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