Other Ways to Terminate a Franchise
There are other ways to terminate a franchise. One way is through mutual consent and the rules for doing this depend upon the franchise you own.
Cooling Off Period - In most states, you, the franchisee, can terminate your franchise agreement during a cooling off period, usually from seven to twenty-one days after you sign the agreement.
Location, Location - If you enter into a franchise agreement but have no designated location, the franchisor is not allowed to force you to choose one that is not desirable to you. If no location is found by the 180th day, the franchise agreement can be terminated.
Option - Your agreement may have a renewal option where you can terminate the agreement at the end of a specified term. Most franchise agreements have options that automatically renew, however.
Mother Nature - If your business is demolished by Mother Nature through storms, hurricanes, floods or other forces out of your control, you may be able to cancel your franchise agreement.
Death - Death by the franchisor may be a way for you to terminate your franchise agreement. This may not work if you, as the franchisee, die prematurely. Usually franchisees are asked upon initially signing the franchise agreement who will take over in the case of premature death or incapacity of the franchisee.