Laws governing franchising are designed in part to prevent franchisors from terminating franchises without good cause.

Question

Quizplus · Accepted Answer

Yes, laws governing franchising often include provisions to protect franchisees from arbitrary termination by franchisors. Such provisions ensure that franchisors must have valid reasons for terminating a franchise agreement, such as breach of contract or failure to maintain brand standards, rather than terminating a franchise simply to replace it with a new franchisee or to avoid paying royalties.

Laws Governing Franchising Are Designed in Part to Prevent Franchisors