How to Get out of a Failing Franchise
Have you been considering closing your franchise? Maybe things have changed since you signed up for your franchise; maybe the franchise is not what it was then. Or maybe the business is failing, no longer making money, and your franchisor is not willing, or able, to help you return to profitability. In that case, you may want to consider getting out of a franchise agreement.
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How to Get Out of a Franchise
If you are wondering how to get out of a franchise, there are many factors to consider before moving forward. Most franchise agreements contain non-compete covenants that prohibit the franchisee from working in the same business at the same location for a year or two. Whether you can and how to avoid being trapped by these covenants depends on a myriad of factors and circumstances.
You can’t avoid the covenant by simply “selling” your business to your brother-in-law. You need a strategy to close a franchise and get out cleanly and completely. Additionally, if you try to get out, the franchisor may also contend that you owe it the royalties that you would pay for the remaining years of your agreement. We have helped remove or reduce the amount allegedly owed for these purported ‘lost royalties’ for many clients in a variety of industries.
Finding The Ideal Solution
Garner, Ginsburg & Johnsen, P.A., has helped scores of franchisees in Minneapolis and throughout the country get out of their agreements or change the terms of their agreements to make life with the franchisor more livable though our expert franchise legal advice. Our lawyers have fought back — and succeeded — against some of the biggest names in the industry, and helped franchisees get out of their franchise in more agreeable circumstances.
Understanding Your Rights
Your rights to get out of your franchise depend on the wording of the agreement, where you are located, the practices of the franchisor and the history of your dealings with it.
The attorneys at Garner, Ginsburg & Johnsen, P.A., can do a thorough review of your agreement and situation. Contact the firm to review your rights and liabilities, and learn more about the steps that can be taken to get out of your franchise agreement. The firm can be reached through the contact form above or by calling 612-259-4800.