What constitutes 'good cause' for Mr. Sandless to terminate a franchise agreement?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) A provision that permits a franchisor to terminate a franchise prior to the expiration of its term except for good cause.
Good cause shall include the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than thirty (30) days, to cure such failure.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 30–34)
What This Means (2025 FDD)
According to the 2025 Mr. Sandless Franchise Disclosure Document, Mr. Sandless can terminate a franchise agreement prior to its expiration only for "good cause." Good cause includes the franchisee's failure to comply with any lawful provision of the franchise agreement. To terminate the agreement, Mr. Sandless must provide the franchisee with written notice of the failure and a reasonable opportunity to correct it. The cure period need not be more than 30 days.
This is a fairly standard clause in franchise agreements. It protects the franchisee from arbitrary termination while allowing Mr. Sandless to maintain brand standards and protect its business interests. The requirement of written notice and a cure period gives the franchisee an opportunity to rectify any issues before termination occurs.
However, the definition of "good cause" can be broad and may include various violations of the franchise agreement. A prospective franchisee should carefully review the Mr. Sandless franchise agreement to understand what specific actions or omissions could lead to termination. It is also important to understand what constitutes a "reasonable opportunity" to cure a failure, as this can be subjective and potentially lead to disputes.