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How do you quit owning a franchise?

| Jan 26, 2021 | Franchise Law |

When a typical job is no longer a good fit for you and your lifestyle, leaving is as simple as telling your boss you are quitting. There may be more considerations when you own a business, but the process may still be simple.

There are even more considerations when you want to leave a franchise. Often the contracts are long and can be challenging to leave.

This is what you need to think about if you are considering leaving your franchise.

Consider your reasons for leaving

Depending on the business and the franchise’s details, you may be satisfied with the work but feel you are not getting the resources you want or need from your franchisor.

As you consider your future plans and how you feel about your franchise work so far, think about what you need to feel satisfied and successful. Think about whether you feel supported and what it would take to change that if you do not.

Would staffing changes help?

Part of your ability to be successful as a franchisee is the people who are part of your support team. Depending on your franchise’s size and your success so far, you may have limited options to bring in additional help to support you.

After considering your reasons for wanting to leave the franchise, think about your weak areas and whether you need to hire someone who can assist you. You may also have someone on your current staff who could support any of your weak areas. For some, it is more efficient to get outside support rather than spend time and frustration building skills outside of your strengths.

Time to check the contract

As you consider making a change away from owning a franchise, it is time to locate your copy of the contract to look over the provisions for leaving.

Your contract should include the conditions for selling or reassigning your franchise. Your agreement may have challenging requirements for you to fulfill, but it will at least give you a starting point for discussing your departure with the franchisor.

Keep in mind, as much as a franchisor wants their franchisees to be successful, they also want franchisees to fulfill the agreement’s terms. Their ability to support you and advocate for your interests is inherently limited because they need to look out for the franchise first.

As you look over your contract for options to leave your franchise, you should talk to an attorney who is well-versed in franchise law. Your lawyer will represent you and your interests and can advocate for you and your goals. An experienced attorney can also help you understand all your options for leaving the franchise, including those that may mean penalties.