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Bobby (anonymous)

I would like to know if this paragraph in my contract means  if i  can terminate the contract by giving 3 months notice  without any exit payments.

“give the Franchisor at least three months prior notice of the implementation of any decision to cease or threaten to cease to carry on the Franchisee’s Business within the territory ”

It is  a 5 year contract with no mention of exit penalties, just the no trading for 12 months in the same territory clause, grateful for any advice , many thanks 🙂

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Thanks for your query. I do not think this would give you the right to terminate with 3 months notice, this clause appears to relate to something which would prevent you from continuing to trade to allow the franchisor to try to mitigate any potential losses as a result.

That said I am not a lawyer and if you have issues with your existing franchisor and/or legal queries you would be best to speak to a franchise lawyer. Our free legal advice guide and list of franchise lawyers can be found at https://www.franchise-uk.co.uk/advice/legal-advice/

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