Franchise termination
The early end of a franchise contract before its term, at the franchisor’s initiative — for serious franchisee breach — or the franchisee’s initiative — for franchisor failings. It has significant financial consequences and triggers the post-contractual non-compete clause.
In practice
Termination by the franchisor must be based on serious and proven breaches, duly notified with an opportunity to remedy. A franchisor that terminates without a proper contradictory procedure exposes itself to substantial damages. Termination by the franchisee for franchisor failings requires documented evidence of the deficiencies. The French Enterprise Mediator service is recommended before any court proceedings.