Default Termination

In nearly all franchise systems, there is a requirement that the franchisees comply with the policies and procedures of the franchise system. This will include monetary and non-monetary obligations throughout the franchisor/franchisee relationship. Many provinces have enacted legislation to govern the franchisor/franchisee relationship and many of the common elements in the various provincial legislations provide for good faith and fair dealing on the part of both franchisors and franchisees in both the performance and enforcement of franchise agreements.
Whether you are a franchisor seeking to sanction a franchisee for not complying with the policies and procedures of the franchise system, or if you are a franchisee who has been served unfairly with a notice of default or notice of termination, we would be pleased to assist you and guide you through this process.  We will explore your options and goals and work with you to resolve the problem and achieve the best possible result, which may involve taking steps to restore the relationship or, where appropriate, to effect a separation of the business relationship. Most franchise agreements contain obligations that survive termination and we are often consulted by franchisors and franchisees to ensure that the post-termination obligations are fulfilled.

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