APPENDIX D Statutory Examples of Good Cause for Termination

• Author: Barkoff, Rupert M., Selden, Andrew C.
• Pages: 329-330

Appendix E: Procedural Requirements for Termination and Nonrenewal 329

APPENDIX D

Statutory Examples of Good Cause

for Termination

(as of June 1, 2004)

Grounds

1. Failure to comply with the

requirements imposed by the

franchisor, or breach of the

franchise agreement.

2. Voluntary abandonment of the

franchise.

3. Criminal conviction of the

franchisee on a charge related to

the franchise business.

4. The franchisee’s insolvency or

bankruptcy, or assignment for the

benefit of creditors.

5. Failure of the franchisee to pay

sums due to the franchisor.

6. Loss of either party’s right to

occupy the premises.

7. Material misrepresentation by the

franchisee relating to the franchise.

8. Conduct by the franchisee that

materially impairs the goodwill of

the franchise business.

9. The franchisee’s repeated

noncompliance with the

requirements of the franchise.

States

Arkansas, California, Connecticut,

Hawaii, Illinois, Indiana, Iowa,

Michigan, Minnesota, Nebraska,

New Jersey, Washington,

Wisconsin

Arkansas, California, Connecticut,

Illinois, Iowa, Minnesota, Nebraska,

New Jersey, Washington

Arkansas, California, Connecticut,

Illinois, Iowa, Minnesota, Nebraska,

New Jersey, Washington

Arkansas, California, Illinois, Iowa,

Minnesota, Nebraska, Washington

Arkansas, California, Nebraska

Arkansas, Nebraska

California, Nebraska, Iowa

California, Minnesota

California, Illinois, Iowa

329