Miami, FL commercial litigation attorney Robert Zarco talks about whether or not a franchisee can get out of a franchise agreement early. He explains that franchise agreements generally include provisions allowing a franchisor to terminate the agreement if the franchisee fails to meet contractual obligations or standards. It is uncommon, however, for these agreements to grant franchisees a similar right to terminate. Despite this, a franchisee may argue that constructive termination has occurred if the franchisor engages in negligent conduct or fails to fulfill its obligations.

For example, if a franchisor unjustifiably stops supplying a proprietary product essential to the franchisee’s operations, the franchisee may assert a claim of constructive termination. In some industries, such as hotel franchises, agreements may include an early exit window, allowing franchisees to terminate the contract before its full term. These provisions are rare, as franchisors generally seek to preserve brand consistency and long-term value.