What remedies are available to franchisees for Wrongful Termination of the Franchise Agreement? If a franchisee believes they have been wrongfully terminated, the franchisor bears the obligation to demonstrate that the termination was indeed proper. He explains that when a franchisee believes they have been wrongfully terminated, the franchisor carries the burden of proving that the termination was proper. In such cases, the franchisee can seek a court determination regarding the validity of the termination.

Typically, if a terminated franchisee wishes to continue operating under the franchisor’s brand while the termination is under review, the franchisor may file for a preliminary injunction. This injunction seeks to immediately halt the franchisee’s business operations and prevent further use of the brand.

During the preliminary injunction hearing, the franchisor must demonstrate that the termination was justified before the court will confirm its appropriateness. He notes that this process is closely observed, as an unjust termination can significantly impact the franchisor’s reputation and credibility.