Definition: The failure of either Franchisee or Franchisor to fulfill the terms of the Franchise Agreement.
Examples: By not paying the Franchisor as outlined in the Agreement, the Franchisee defaulted, thereby nullifying the Agreement.
"Default"
By Don Daszkowski, About.com Guide
Explore Franchises
Must Reads
About.com Special Features
Start your new business on the right foot with these helpful tips. More >
Easy steps to take control of your credit card debt. More >
©2009 About.com, a part of The New York Times Company.
All rights reserved.