Getting out of a Franchise Agreement

UPDATED: Jun 17, 2009

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Getting out of a Franchise Agreement

My franchise contract says I cannot own or operate a simliar business inside of 5 kms from the existing frachise that I own. How do they measure this? On google there are answers from 4.2-5.4 km’s depending on how you enter it. How will the franchisee measure this and what can he do to me if I do buy the new business and then he finds out?

Asked on June 17, 2009 under Business Law, Michigan


B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

I'm not a Michigan lawyer, but in most states, that kind of distance is measured in a straight line, not along the roads, between the nearest point  of the two properties.

The first place to look, for what the franchise owner can do if he finds out that you're in breach of contract, is the franchise agreement itself.  I suspect that there are some unpleasant possibilities there, and you've already agreed to them.

Before you commit yourself to the new location, and the breach of your franchise agreement, I think you really need to have a local attorney review all of the facts, including the agreement, for reliable advice about how to go forward.  One place to find counsel is our website,

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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