Transfer and Termination of Franchises

Transfer of a franchise refers to the process of selling or passing the franchising rights to another party. Franchise agreements often require the franchisor's approval before this can happen, ensuring control over brand standards. Termination occurs when a franchisor ends the franchise agreement, often due to the franchisee's failure to comply with the terms, such as not meeting performance standards. Both processes are governed by the franchise contract and relevant laws to protect both parties’ interests. Essentially, they ensure that the brand maintains its integrity and operational consistency throughout its locations.