Normally,a franchisee receives a windfall on the termination of a franchise.

Question

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A franchisee may receive compensation on the termination of a franchise agreement, but it is not usually considered a windfall. The amount of compensation will depend on the terms of the franchise agreement and the reasons for termination. In some cases, the franchisee may actually lose money due to termination fees or obligations to purchase inventory or equipment.

Normally,a Franchisee Receives a Windfall on the Termination of a Franchise