By Yasmine EDDAM
4 April 2025
Like any contractual relationship, that between a franchisor and a franchisee - a contract with specific characteristics - comes to an end. This stage, often dreaded, is nevertheless a normal part of business life. Whether it occurs at the end of the contract, by mutual agreement, or following a dispute, the termination of a franchise contract raises complex issues and is frequently a source of litigation. What are the different ways in which a contract can be terminated? What obligations remain after termination? How should restrictive competition clauses be managed? Can the franchisee claim compensation? This article explores the different scenarios for terminating a contract and deciphers the major legal and practical issues for partners. How does a franchise contract come to an end? The end of a franchise contract may occur in the "normal" way, as planned or agreed by the parties, or it may be...
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