3
Important Issues Related
to Renewing Your
Franchise Agreement
R
enewing your existing Franchise Agreement does not
have to be an overly complicated or painful experience.
But, to make sure that is true, there are certain steps
you need to follow. While you should read the terms
of your existing Franchise Agreement to fully understand your
renewal rights, set forth below are three important issues related to
renewing your Franchise.
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1. Provide Written Notice
Almost all Franchise Agreements require the franchisee to
provide PFHQ with written notice saying that the franchisee
wants to renew. Typically, you need to send PFHQ written
notice between six and 12 months before your existing Franchise
Agreement expires. The notice does not need to be complicated
or long. It should just say your existing Franchise Agreement is
coming up for renewal and you would like to start the renewal
process. Providing this notice does not
require you to renew; it, again, just starts the
renewal process. So, if there is any chance
you want to continue operating, you should
likely send out the notice in order to keep
your options open.
Because these deadlines are easy to miss,
you might think about creating calendar
by Mark Dady
reminders (12 months prior to the expira-
tion of your Franchise Agreements) to remind
yourself about the expiration dates, and when you receive the
reminder, send the written notice. Setting the reminder 12 months
in advance should give you enough time to correct any deficiencies
related to your club (as you do not want to be in default when
you request the renewal) and then send the written notice well in
advance of the timing in your Franchise Agreement.