Check notice and disclosure before a franchise holds over
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the agreement and the correspondence, record the end date of the term, whether the parties propose a month-to-month or other holding-over arrangement, and whether notice and disclosure have already been given. Do not draft the notice.
- What the lawyer must review
- The lawyer decides whether the steps for an extension have been done before holding over starts. A franchisee is not automatically entitled to a further term. Instead of renewing or extending, the parties may enter a month-to-month or holding-over arrangement. The obligations for extending a franchise agreement still apply before that arrangement can go ahead, so the franchisor must still give notice and provide disclosure. On the same page, notice of whether the agreement will be extended or another agreement granted is given at least 6 months before the end of the term, or at least one month before the end if the term is less than 6 months. This check does not prepare the end of term notice. Different rules for new vehicle dealership agreements were not opened.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | From the agreement and the correspondence, record the end date of the term, whether the parties propose a month-to-month or other holding-over arrangement, and whether notice and disclosure have already been given. Do not draft the notice. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Holding over is not treated as free of the extension notice and disclosure.
- The term length decides whether the notice timing on the page is six months or one month.
- New vehicle dealership rules are a different page and were not applied.
Related tasks
Draft or review a franchise disclosure document against the prescribed headingsCheck the franchisor's disclosure and any registration the jurisdiction requiresDraft or review a franchise agreement from the disclosure and the term sheetBuild a franchisee due-diligence issues list from the disclosure pack