Getting Out of a Franchise

When it comes to breaking a franchise contract, the law usually swings in favor of the franchiser. That’s mainly because franchisers are able to limit their liability through UFOCs and franchise agreements with built-in clauses and disclosure. Because franchisers must list and substantiate earnings claims, current and past litigation, how many franchises are in operation, and how many have been terminated, along with anything else material to the business, franchisees have less wiggle-room when opting out of an agreement.

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