A franchise is time bound arrangement made between a franchisor and a franchisee where the franchisor lets the franchisee run his/her business branch in return for a franchise payment.  Whenever an arrangement of this type terminates, a contract is formed and this contract is known as termination of franchise contract.

A termination of franchise contract is generally formed in those situations where the franchisee arrangement ends either prematurely or at its designated time. The contract must thus state clearly the reason for the termination of the arrangement and give the correct details of the franchise.

Any contract which is formed to terminate a franchise must begin by giving the details of the involved parties including their names, addresses and contact numbers. The contract document must then state the reason for termination and the date on which the franchise shall end.

The most important part of any termination of franchise contract is the part where the terms and conditions are given. These points should give the clauses of the termination and how the parties are expected to conduct themselves upon the termination of the franchise. The contract must be signed by both the franchisor and the franchisee to give their mutual consent.

Sample Termination of Franchise Contract:


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