Terminations & Liquidated Damages.

 

Terminations & Liquidated Damages

Franchisors exercising an early termination and collecting liquidated damages is a potential conflict of interest where a franchisor can profit from terminating a franchisee.  FFI’s position is that liquidated damages clause should not be enforceable when a franchisor terminates a franchisee and should be limited in all other cases of termination.

W

No liquidated damages for franchisor initiated terminations .

W

Damages limited to amount reasonable and maximum of six month franchisee fees .

W

No termination without due judicial process.