A franchise agreement is a contract between a franchisor and a franchisee that governs the relationship between the two parties. It outlines the terms of the franchise, including the obligations of the franchisor and the franchisee. However, sometimes disagreements may arise between the parties which may lead to the termination of the agreement.

When such a situation arises, it is important to ensure that the termination process is handled professionally and in line with the terms of the agreement. This includes the drafting of a letter of termination of franchise agreement which should be clear, concise, and professional.

Here is a sample letter of termination of franchise agreement that can be used as a guide:

[Your Company Logo]

[Date]

[Franchisee’s Name]

[Franchisee’s Address]

[Franchisee’s City, State, ZIP Code]

Dear [Franchisee’s Name],

We regret to inform you that we have decided to terminate the franchise agreement between your business and ours, effective [Date of Termination]. This decision has been made due to [Reason for Termination].

As per the terms of the franchise agreement, we request that you discontinue the use of our trademarks, service marks, and other proprietary information. Additionally, we ask that you immediately cease all operations of the franchised business and that you vacate the premises of the franchised business within [Termination Notice Period] days of receipt of this letter.

Please note that we reserve all rights to pursue any legal action against you or your business if there is any breach of the terms of the franchise agreement.

We appreciate the efforts you have put in during the course of the franchise agreement. However, this decision has been arrived at after careful consideration.

If you have any questions or concerns regarding this matter, please do not hesitate to contact us.

Sincerely,

[Your Name and Title]

[Your Company Name]