Franchise Termination Letter

By | November 7, 2013

To,

Mr. John Portaco

Barbarra Showroom Pvt. Ltd

Austin, Texas

Date: 19-09-2013

Sub: Franchise contract termination, ref- Cn 5454585

Dear Mr. Portaco,

This letter is to inform you formally that our management has taken a decision to terminate the franchisee distribution in your retail shop. We had given you verbal notification six months back on the sales turn over from your store and given you enough time to pull through the business, but all in vein. It has been seen that the sales revenue from your allotted franchise is too poor in last four years. During the agreement of our contract you had promised to give us $2541 turn over in every month, but as per the report, we have observed that the growth rate of business is in the negative zone in last two years. Due to the poor performance of your stores, it has become really difficult for us to put up with the high cost of running the franchise.

We are going through the restructuring drive due to the economic decelerate and our management has taken decision to stop all the business operations that have become redundant. Our company shall be promoting new product range very soon and we are planning to take up some active franchisee this time to recover the loss.

I, therefore, will be glad if you kindly do the needful for the said subject and give us back the rest of the stock and the financial details. It was a pleasure working with you. We hope you will co-operate with us in our decision.

Thanking you,

Yours faithfully

Ronda Saxer

DGM-Sales

Portacco Garment