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Franchise Termination

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taylorjm

Member
What is the name of your state? Michigan

I'm in the process of trying to terminate a franchise agreement I have. There is a section of the agreement that states the following:

This Agreement shall terminate without further action by FRANCHISOR or notice to FRANCHISEE if FRANCHISEE:

1. Fails or refuses to make payments of any amounts due FRANCHISOR or FRANCHISOR’s affiliate(s) or agents under this Agreement or otherwise and does not correct such failure or refusal within ten (10) business days after written notice of such failure is delivered to FRANCHISEE;


The Franchisor sent me a letter saying how much I owed them in back royalties, and that I needed to pay them by April 8th, 2005. The letter was cc'd to the partners of the Franchisor and the Franchisor's attorneys. I then sent a letter back saying that they sent me "written notice" of monies owed, and if I didn't pay, according to the agreement, that the agreement would self terminate.

Today I received a letter stating that the agreement would only self terminate if I would have received a "formal legal notice of default", and that I wasn't sent one so the agreement is still valid. That letter wasn't cc'd to anyone else, no partners, no attorneys.

Today I sent a letter saying that the agreement states "written notice" and nothing about a "formal legal letter of default", and will therefore self terminate. Am I right or wrong??

Thanks.
 



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