APPENDIX E Procedural Requirements for Termination and Nonrenewal

• Author: Barkoff, Rupert M., Selden, Andrew C.
• Pages: 331-335

Appendix E: Procedural Requirements for Termination and Nonrenewal 331

Arkansas

The franchisor may not terminate or fail to renew without giving the franchisee

ninety days’ notice. In the case of termination, the franchisor must give the fran-

chisee thirty days in which to cure.

Notice and cure are not required for termination due to:

(1) voluntary abandonment,

(2) criminal conviction,

(3) any act by the franchisee that substantially impairs the franchisor’s trade-

mark or trade name,

(4) institution of insolvency or bankruptcy proceedings by or against a franchi-

see or an assignment for the benefit of creditors,

(5) loss of either party’s rights to occupy the premises, or

(6) failure to pay sums due to the franchisor within ten days after receipt of

notice.

A ten-day cure period is required for termination or failure to renew due to:

(1) repeated deficiencies, within a twelve-month period, giving rise to good

cause based on noncompliance with the franchisor’s requirements, or

(2) failure by the franchisee to act in good faith and in a commercially rea-

sonable manner.

California

Termination: The franchisor must give notice “and a reasonable opportunity, which

in no event need be more than 30 days, to cure.” The notice period is not specified.

Nonrenewal: The franchisor must give the franchisee at least 180 days’ notice of its

intention not to renew.

Connecticut

The franchisor may not terminate or fail to renew without giving the franchisee

sixty days’ notice.

APPENDIX E

331

Procedural Requirements for Termination

and Nonrenewal

(as of June 1, 2004)