A franchisee's breach of the duty of honesty and fidelity can be enough to allow a franchisor to terminate a franchise even if their contract contains a notice-and-cure provision.

Question

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The duty of honesty and fidelity is a fundamental obligation of a franchisee, and a breach of this duty can be considered a material breach that allows the franchisor to terminate the franchise agreement without notice or an opportunity to cure. This is because a breach of this duty goes to the heart of the franchise relationship and undermines the trust and confidence necessary for the parties to work together effectively. Therefore, even if the franchise agreement contains a notice-and-cure provision, a franchisee's breach of the duty of honesty and fidelity can be sufficient grounds for termination.

A Franchisee's Breach of the Duty of Honesty and Fidelity