Click to find out which states have each protection.
Termination only with good cause
Notice for termination
Franchisor cannot terminate your franchise agreement without an adequate reason. The definition of “good cause” varies by state.
At least 30-day cure period for termination
Franchisor must generally give written notice before terminating your franchise agreement.
Compensation for termination
Franchisor has to give you at least 30 days to correct any documented problems before terminating your franchise agreement.
Nonrenewal only with good cause
Some provision for compensation if franchisor terminates your franchise agreement. Compensation provisions vary significantly, and some are very limited.
Notice for nonrenewal
Franchisor cannot refuse to renew your franchise agreement without an adequate reason. The definition of “good cause” varies by state.
Compensation for nonrenewal
Franchisor must generally provide notice before refusing to renew your agreement.
Some provision for compensation if franchisor refuses to renew your franchise agreement. Compensation provisions vary significantly, and some are very limited.
Freedom of association protections
Some protections against franchisor opening competing units near your franchise.
Franchise inheritance protections
Franchisor cannot prevent you and fellow franchisees from forming independent franchisee associations or retaliate against you for joining an association.
Some protections of your ability to pass on your franchise to your spouse or heirs.
Some protections of your ability to sell or transfer your franchise.
This is not legal advice. Franchise law is complicated, and this list of selected provisions cannot capture all the fine points. This list covers only certain provisions regulating the franchisee-franchisor relationship after franchisees invest in a franchise. It does not cover any provisions of pre-investment disclosure laws. Consult a lawyer before signing a franchise agreement or if you are in a dispute with your franchisor.