Does the RI Amended Law Set A New Franchise Standard?
The RI law calls for:
60 days prior written notice of termination, cancellation, or nonrenewal.
30 days in which to cure any claimed deficiency, provided that a dealer has a right to cure 3 times in any 12 month period.
Even though the dates had been reduced from the original law, it still sounds fair and reasonable to me.
The AAFD Published Standard in its Fair Franchising Standards:
STANDARD 12.3 DEFAULT BY A FRANCHISEE
A franchise agreement should contain a provision setting forth material events of default by a franchisee, a franchisors right to terminate for good cause, after notice and a reasonable time to cure, where appropriate, and a franchisee’s post termination rights and obligations.
The RI Law quantifies the time frame, the question is: Is 60 days notice and 30 days to cure sufficient?
If so, maybe the AAFD should consider using the RI law as the basis of its "Default By A Franchisee" standard?
If it does, that standard has already been vetted and agreed to in RI by the powers that be.
- Franchise topic:
