


In addition to reviewing the franchise agreement between the franchisor and the franchisee, a determination must be made as to whether state franchise relationship, business opportunity, termination or other relevant statutes or case law apply. While a franchisor may have the legal right to default a franchisee, there are many issues that a franchisor should consider prior to determining whether to send out a default letter.ĭeciding to default a franchise is a serious step, therefore, it’s important that the franchisor remember that this process may ultimately lead to the termination of the parties’ relationship. Thus, the determination of whether to declare the franchisee in default under the franchise agreement must be given serious consideration.
