What is the procedure for renewing a franchise agreement?

The procedure for renewing a franchise agreement in New York depends on the terms of the original agreement. Generally, the franchisor must provide at least sixty days’ notice before the expiration of the agreement. During this notice period, the franchisee and franchisor are allowed to negotiate a new agreement in the same way as when the agreement was first established. After the sixty-day notice period, the franchisee must acknowledge they have received the notice and provide a written response to the franchisor. This response is required to indicate whether the franchisee will agree to enter into a new franchise agreement or not. If the franchisee agrees, the usual procedure is for the franchisor to provide the franchisee with a new agreement that outlines the updated terms and conditions. The franchisee then reviews the agreement and signs it if they are satisfied. When signing a renewal agreement, it will usually include provisions for an automatic renewal after the initial term expires unless either party terminates the agreement. The franchisor must provide their franchisee with the terms of the automatic renewal at least one hundred twenty days before that renewal is due. The franchisee must then acknowledge in writing that they have received the notice and indicate whether they will enter into the renewal or not. By following the outlined procedure, a franchise agreement should be legally renewed in New York. It is important that both parties carefully review the terms of the agreement before signing it in order to avoid any legal disputes in the future.

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What is the procedure for renewing a franchise agreement?

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