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How can I get out of a franchise agreement?

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  4.  » How can I get out of a franchise agreement?

Like other contracts, automobile dealer franchise agreements are based on the foundational principles of contracts law. An offer is made, an acceptance is garnered and, in exchange, some consideration passes between the hands of the transacting parties. However, when it comes to franchising, additional terms about business operations and other pertinent matters may also be included therein.

Since franchise agreements are similar to other agreements, many traditional contract remedies and termination methods may be relevant. For example, if a franchisor breaches their agreement to train and support their franchisee, the franchisee may have an opportunity to get out of their agreement. Similarly, a franchisor that misrepresents or fails to disclose material facts about their business may open the door to its franchisees to be released from their binding franchise agreements.

Franchisees may simply choose to end their franchise relationships, and to do so, they may have to follow the terms set forth in their contracts. They may be subject to penalties, if they terminate their agreements before an established time frame passes; as with all contract matters, readers must consult their own franchise agreements and business attorneys to fully understand their rights and responsibilities under their operating contracts.

If a franchise agreement is detrimental to the business and operations of a Florida franchisee, they may look into legal ways of getting out of their contract without incurring exorbitant penalties and fees. The world of contracts law can be complicated and is often better navigated with the help and support of a knowledgeable contracts and franchise attorney as this post is not written to provide any legal advice.