Franchise (Franchise Agreement)
Termination of Franchise Agreement by Franchisees
Termination of franchise agreement
- Where grounds for termination of a franchise agreement occur to a franchisee, he/she may notify the franchiser of the termination of the franchise agreement and terminate the franchise agreement (Article 11(2) of the 「Fair Transactions in Franchise Business Act」 and Article 543(1) of the 「Civil Act」).
- If a franchise agreement between a franchiser and a franchisee is terminated, all rights and obligations related to a franchise business, such as trademarks license, etc. are also terminated. However, the same shall not apply to claims and debts, such as the payment, etc. of goods and services already purchased from the franchiser on credit.