Garner, Ginsburg & Johnsen, P.A. Law Offices

What you need to know: When the franchise agreement runs out

Franchisees sometimes find themselves in the position that their agreements have expired, and yet they continue to do business with the franchisor as they always did.  Sometimes franchisors offer official extensions of the agreement, but often they do not.  This may leave the franchisee in a state of limbo.

In a recent white paper we prepared on this topic, we discussed the following issues:

• In some states, state law may protect the franchisee from the franchisor refusing to renew.  In those states, in fact, the franchisee may be better off without a new franchise agreement than with one.
• The franchise agreement may contain provisions that address what happens if the agreement expires; some, for example, provide that the agreement will continue on a month-to-month basis.
• Under state law, in some states, the agreement will be deemed automatically renewed, on the same terms if it has otherwise expired.

If your agreement has expired and you think you might be in limbo, give us a call so we can help you get on good footing. We pride ourselves in helping those who need legal assistance in the world of franchise law. Contact Garner, Ginsburg & Johnsen today!