Franchisee’s Right of Rescission

The franchisee’s right of rescission allows him or her to act in case of misrepresentation on the part of the franchisor and information in a disclosure document. Should your franchisor fail to provide you with the disclosure document, you may rescind the agreement up to 60 days after receiving the document, or no later than 2 years after granting the franchise itself. Once the franchisor receives your notice of cancellation, he has 30 days to compensate you, the franchisee, for all net losses you have sustained in acquiring, setting up or operating the franchise.