What if the franchisor wants to terminate the franchise agreement before it expires?
Before an agreement expires, a franchisor can terminate it in the following circumstances: • where the franchisee has breached the agreement • where the agreement provides a right to terminate even though the franchisee has not breached it or • where special circumstances apply. Breach by franchisee Unless special circumstances apply, a franchisor seeking to terminate the franchise agreement because of a breach by the franchisee must do the following: • give the franchisee reasonable notice that the franchisor proposes to terminate the agreement because of the breach • tell the franchisee what it needs to do to remedy the breach • allow the franchisee a reasonable time (up to 30 days) to remedy the breach. If the breach is remedied within the prescribed timeframe, the franchisor cannot terminate the franchise agreement because of that breach. No breach by the franchisee A franchise agreement may also give the franchisor the right to terminate the agreement before it expires, even thoug