After signing a franchise agreement with a well-known Korean franchise company and operating the business as a franchisee for three years, a client came to Song Law Firm.
The client wanted to terminate the franchise agreement with the franchisor because the sales of the client’s business had fallen far short of the projected sales initially shown by the franchisor.
However, the franchise agreement prohibited termination within five years of the signing of the agreement. Nevertheless, the lawyers of our corporate law team pored over the franchise agreement and found provisions that the franchisor had not faithfully performed during the term of the agreement, and used these defaults to obtain an early termination of the franchise agreement on favorable terms for our client. The client, who had been struggling with lower than expected sales, was able to wind down the franchise and start a new business on his own terms.