Termination of franchise agreement and its consequences

The franchise agreement is a settlement made between franchisor and franchisee. With this agreement franchisor is obliged to give permission to franchisee his industrial or intellectual property rights and to integrate him into his system. Franchisee, who uses the system which is developed by franchisor, accepts to support sales and pay a fee in return.Franchise agreement is a frame and combined agreement. As a combined agreement, franchise agreement is composed of different elements which belong to other contracts. In our legal system, there is no legislation concerning franchise agreement and termination of it. So, the current study searches, elements of the franchise agreement, in terms of other agreements to be applied by analogy to the legal provisions for the frachise contracts. The study also examines doctrine and court decisions, taking into consideration under which circumstances the franchise agreement expires.Franchise agreement caused a permanent relationship, but it also has its end. And this end has several effects for both the franchisor and the franchisee. Finally, our study evaluates consequences of its termination.