What is the process for ending a franchise agreement?

The process for ending a franchise agreement in Washington is straightforward but should be done properly in order to avoid legal challenges. Depending on the specifics of a particular agreement, either the franchisor or the franchisee may initiate the termination. The Washington Franchise Investment Protection Act requires that a franchisor provide written notice at least 120 days prior to termination. The franchisee should be provided with a copy of the termination agreement, including a clear explanation of the reasons for termination, as well as a timeline for the franchisee’s vacating of the premises. Assuming good faith on both sides, both the franchisee and franchisor should meet to discuss the termination and potential remedies to make sure that all obligations on both sides are satisfied. If the franchisee is to receive any compensation for ceasing operations, that should also be agreed upon. Once everything is settled, the franchisee should provide a written statement acknowledging the termination. Then the franchisee should turn over all keys and documents related to the franchise business, and any remaining payments or fees due should be paid. It is important for all parties involved to act in good faith throughout the process, as termination of a franchise agreement is a serious matter and can have implications for both parties. Both the franchisor and franchisee should have a lawyer review the termination to make sure that all requirements are met and that all parties are treated fairly.

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What is the process for ending a franchise agreement?

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