To protect franchisees against arbitrary or bad faith termination, a state law may require certain procedures be followed in terminating a franchise.

Franchisees

Individuals or entities that purchase the right to operate a business under the branding and business model of a franchisor.

Termination

The act of ending or concluding something, such as a contractual agreement, employment, or a legal entity.

State Law

Laws enacted by a state government that apply within its specific geographic territory and are distinct from federal laws.