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. The franchisee, with such a belief, can approach the court and seek a determination on the validity of the termination. Typically, when a franchisee is terminated and wishes to continue operating the business using the franchisor’s brand during the franchisor’s assessment of the termination’s propriety, the franchisor may go to court to seek a preliminary injunction. This injunction aims to halt the franchisee’s business operations, preventing further use of the brand.

During this hearing for the preliminary injunction, the franchisor must establish, before obtaining a court ruling confirming the termination’s appropriateness, that the termination was indeed proper. This process is scrutinized by franchisees and observers alike, as an unjust termination reflects poorly on the franchisor’s actions.