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Breach of a franchise agreement – 4 key steps for franchisors
January 20, 2026
By Lloyd Pike
A franchise agreement is a legally binding contract between a franchisor and franchisee. It sets out the commercial framework and legal obligations governing the relationship, including fees payable, operating standards, confidentiality, duration, renewal and termination provisions.
In the UK, there are no specific laws governing franchising, which means that it is vitally important to ensure your franchise agreement is clear and provides clarity and protection to both franchisor and franchisee.
That said, navigating franchise agreements – however clear they are – can often be complex and breaches of these agreements can create unnecessary issues when not dealt with properly. Our commercial disputes expert, Lloyd, sets out 4 key steps for franchisors following a franchise agreement breach.
At the first sign of a franchisees’ non‑compliance, franchisors should act promptly to ensure your position is protected. It is important that you act quickly and consider the following steps:
Review the franchise agreement and any other documents relating to it i.e. operations manual, brand standards, guarantees. Identify any preconditions to enforcement, such as mandatory notices or any escalation procedures and ensure strict compliance.
Try to distinguish between a breach that can be remedied and one that cannot. You should also consider whether there are multiple breaches, a pattern of non‑compliance or cross‑defaults under related agreements. When it comes to certain breaches, you may also want to assess whether immediate protective measures are needed to safeguard customers, staff or brand reputation.
Ensure that you keep full and complete records, including any evidence of the breach and a clear chronology of the events that occurred between yourself and the franchisee. It is essential that you hold all evidence and ensure that communications are accurate and consistent with the contractual position set out within the agreement. These records will be vital should a franchise dispute arise and you need to provide evidence.
Professional advisers play a critical role in helping you navigate and assess an alleged breach. Strong early-stage guidance can streamline the entire process and help preserve your rights as a franchisor, as well as comply with any specific requirements you may need to uphold.
An expert franchising solicitor will also be able to engage with the franchisee directly, whether that is through correspondence or through more formal proceedings such as issuing a compliant breach notice.
It is important to identify at the outset whether the breach can be remedied or not. These are often dependent on the terms of the specific agreement that was signed. A breach that can be remedied will often allow for a period for the franchisee to attempt to remedy the breach and for the agreement to continue. However, certain breaches may result in termination of the franchise agreement and franchisor-franchisee relationship upon non-compliance.
The termination clauses within the agreement will set out the conditions under which the franchisor or franchisee can terminate the agreement, and whether you can end the contract due to the specific breach will depend on the wording. Termination is often difficult as it will involve the removal of the franchisee’s business, so it is important that you follow the terms set out in the franchise agreement and seek professional legal advice before proceeding with any action.
A clear and comprehensive franchise agreement is vital. It helps to preserve brand standards and consistency across the network, define performance expectations and protect the franchisor’s goodwill. Well drafted provisions on defaults, notice periods, audit and inspection rights, step‑in powers, termination and post‑termination obligations are essential to enable to protect your position and enforce your rights if issues do arise.
By acting promptly, documenting carefully and following the contract, you can protect your brand value, maximise prospects of remediation, and, where necessary, enforce your rights as a franchisor effectively, whilst minimising disruption to your franchise network and business as a whole. To provide the best chance of navigating this process successfully, it is essential that you seek legal advice as soon as possible.
If you find yourself facing a potential franchise agreement breach, taking the above steps can give you the best chance at securing the best outcome. For more bespoke franchise law advice, you can get in touch with one of our experts for a free no-obligation discussion on 02920 829 100, hello@darwingray.com or via our Contact Form.
To speak to one of our experts today, please contact us on 02920 829 100 or by using our Contact Us form for a free initial chat to see how we can help.
