It is important to recognize that after the termination of the franchise agreement, the franchisee must normally return to the franchisor everything related to the franchise. These include manuals, stationery and business cards showing the brand, customer lists and any other proprietary information that would be included in the franchisor`s intellectual property. If a franchisee has a sublease of the premises or a license to occupy the premises, the franchisee must evacuate the premises, as the termination of a franchise agreement would normally trigger the termination of a sublease. Where a franchisee holds the main lease of the premises, the franchise agreement may (but not always) include a clause allowing the franchisor to have the option of resuming the main lease. This would require the owner`s prior approval. What will happen to a franchise if the franchisee has fulfilled its contractual obligations and wishes to leave at the end of an agreement? The moral of the story is that franchisees must be very careful not to miss the time limits if they have to do something and, in any case, the expiration of the renewed duration or duration is a crucial event. Dismissal without notice must be highlighted so that it is not missed, otherwise the consequences could be catastrophic. This is another reason why those who purchase a franchise should have independent legal advice from a franchise lawyer. Unlike this bumper sticker, a franchise doesn`t last forever, and you want to be sure to buy a viable business with real prospects – not a dog! b) the franchisee must not have breached the agreement during the duration of the agreement. If the franchisee wishes to continue the transaction, but not with the franchisor, how long does a former franchisee generally owe the de-brand brand? Well, things change over time, and the business you buy today may not be the ones you do in 10 years.
Laws change, technology evolves, etc. At the end of the franchise agreement, both parties assure that their mutual agreement and expectations are appropriate given the state of affairs at the time.