Can a Better Homes And Gardens Real Estate Franchise Agreement be mutually terminated?

According to Better Homes And Gardens Real Estate's 2025 Franchise Disclosure Document, the Franchise Agreement can be mutually terminated. Specifically, under Section 16.2.5 of the Franchise Agreement, as summarized in Item 17, the agreement can be ended by mutual consent, in addition to the franchisee's right to terminate if a majority owner dies or becomes disabled, subject to state law and certain conditions.

For a prospective franchisee, this means there is a provision for both Better Homes And Gardens Real Estate and the franchisee to agree to end the franchise relationship. This offers a degree of flexibility if both parties find it beneficial to part ways before the end of the franchise term. However, the FDD does not specify the conditions or process for mutual termination, so it is important for a potential franchisee to understand what circumstances might lead to a mutual termination and what the implications would be.

Additionally, for Limited Purpose Offices, Section 7 of the Limited Purpose Office Addendum states that either party may terminate the agreement upon 30 days' notice, subject to state law. This provides an easier exit strategy compared to the standard franchise agreement, where termination might involve more complex conditions or negotiations. This difference highlights the importance of understanding which agreement governs the specific franchise type being considered.

It is important to note that the termination rights are subject to state law, which may provide additional protections or restrictions for franchisees. Therefore, prospective franchisees should consult with legal counsel to fully understand their rights and obligations regarding termination under both the franchise agreement and applicable state laws.