At-Will Terminations

• Generally, termination of a franchise agreement is allowed only after a specific set of negative circumstances, known as "good cause," occur. However, both parties can agree to waive the requirement for good cause and allow for "at-will" terminations before beginning a franchise agreement.
  
  

Good Cause Terminations

• Good cause can include, but is not limited to, not meeting agreed sales or purchasing quotas, unsatisfactory performance in certain areas, not undertaking certain tasks agreed in the agreement, bankruptcy or ownership changes.
  
  

Termination Timelines

• When a franchiser wishes to terminate a franchise agreement with an entrepreneur with good cause, they must give the entrepreneur at least 30 days to attempt to remedy the problem unless the entrepreneur agrees to the termination before 30 days or if the failure is beyond the entrepreneur's control, such as a natural disaster.