The moment parties get to agree, it will mean both of them are committed to work together for the period stated. In the case of a franchisee, the period comes with a number of challenges. This is so because a business might face many challenges, either financial or in terms of running the business.In considering franchise termination Illinois owners of business need to know what it would involve.
There are questions that a franchisee needs to ask himself or herself before getting into an agreement. First, it is important to know if they will be able to run the business for that period stipulated. Secondly, they should have a plan of action in case things do not go as planned. These are risks that are common in any business enterprise. For this reason, one should have an idea of ways to terminate their agreement in the event that things do not work out as planned.
Should there be change of mind before the deal kicks off, a cooling off period contained in the code of conduct can be useful. This makes it possible to terminate the agreement within 7 days. This can happen either after the agreement is reached or after payments are made. The period is standard and applies only to agreements that are new. It will not be applicable for renewals or transfers. There will be a refund but without any incurred expenses.
Besides the period of cooling off which is normally enforceable for franchises, you will find agreements that never allow franchisees to bring agreements to an early end. This means an agreement should not be terminated before its term. As a result, you should carefully go through the agreement documents and if possible seek a legal opinion. This enables you to know what you are dealing with. Any potential franchisee should consider some negotiating with the franchiser before the final agreement gets signed.
Another negotiation option that can be used is to insert an exit clause in case come events occur. For example, if premises relocate to a different location, or finances are not approved, you should be allowed to terminate the agreement. These are options that one should explore.
If there is no option to terminate, the agreement requires that you operate the business until the term expires. However, you can still do the termination in case the franchiser breeches the agreement. You will most likely be required to follow appropriate dispute resolution that is prescribed by the franchise agreement or by the franchising code of conduct.
You can make use of dispute resolution procedures to request for termination of the agreement. You can however only do that if there is a cause of action against your franchiser to indicate there was a breech of the agreement. There is never a guarantee that the process will lead to termination because it depends on strength of the case.
You can also consider reaching a mutual agreement for termination. This is a negotiation process with the franchiser. For the best outcome, you will need to research on the best way to approach the matter.
There are questions that a franchisee needs to ask himself or herself before getting into an agreement. First, it is important to know if they will be able to run the business for that period stipulated. Secondly, they should have a plan of action in case things do not go as planned. These are risks that are common in any business enterprise. For this reason, one should have an idea of ways to terminate their agreement in the event that things do not work out as planned.
Should there be change of mind before the deal kicks off, a cooling off period contained in the code of conduct can be useful. This makes it possible to terminate the agreement within 7 days. This can happen either after the agreement is reached or after payments are made. The period is standard and applies only to agreements that are new. It will not be applicable for renewals or transfers. There will be a refund but without any incurred expenses.
Besides the period of cooling off which is normally enforceable for franchises, you will find agreements that never allow franchisees to bring agreements to an early end. This means an agreement should not be terminated before its term. As a result, you should carefully go through the agreement documents and if possible seek a legal opinion. This enables you to know what you are dealing with. Any potential franchisee should consider some negotiating with the franchiser before the final agreement gets signed.
Another negotiation option that can be used is to insert an exit clause in case come events occur. For example, if premises relocate to a different location, or finances are not approved, you should be allowed to terminate the agreement. These are options that one should explore.
If there is no option to terminate, the agreement requires that you operate the business until the term expires. However, you can still do the termination in case the franchiser breeches the agreement. You will most likely be required to follow appropriate dispute resolution that is prescribed by the franchise agreement or by the franchising code of conduct.
You can make use of dispute resolution procedures to request for termination of the agreement. You can however only do that if there is a cause of action against your franchiser to indicate there was a breech of the agreement. There is never a guarantee that the process will lead to termination because it depends on strength of the case.
You can also consider reaching a mutual agreement for termination. This is a negotiation process with the franchiser. For the best outcome, you will need to research on the best way to approach the matter.
About the Author:
Learn more about the franchise termination Illinois process and get more info about a reputable franchise and dealership litigation firm at http://www.cdcaruso.com/franchise-distribution/terminations today.
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