Nebraska franchise termination law

Nebraska's Franchise Practices Act limits good cause to substantial non-compliance and requires 60 days' written notice. It states no cure period.

Nebraska's Franchise Practices Act is Neb. Rev. Stat. 87-401 to 87-410. It narrows good cause to one thing, substantial non-compliance, and requires 60 days' written notice. It gives a list of grounds that allow shorter or immediate notice. It does not state a cure period.

Source note: Nebraska's legislature site refused connections on 28 October 2026, so the text was read from an Internet Archive snapshot (2025) of the official statute pages. Treat it as an archive copy and check the live official text for later amendments.

Three coverage tests

Section 87-403 says the Act applies "only to a franchise" meeting all three tests:

its performance contemplates or requires a place of business in Nebraska;
gross sales of products or services between franchisor and franchisee under the franchise exceeded $35,000 in the 12 months before suit was started;
more than 20 percent of the franchisee's gross sales are intended to be or are derived from the franchise.

The definition in 87-402 also requires a written arrangement with a franchise fee and a community of interest in marketing, and it excludes petroleum arrangements. Section 87-407 adds that the sections do not apply to franchises subject to any other Nebraska statute. Whether you meet each test depends on your own numbers and documents; this page gives no verdict.

Good cause and notice

Under 87-402(8), good cause is "limited to failure by the franchisee to substantially comply with the requirements imposed upon him or her by the franchise." Under 87-404(1), a franchisor must give written notice "setting forth all the reasons" at least sixty days before termination, cancellation or failure to renew. The text read has no cure period.

When the 60 days does not apply

Ground	Notice the statute allows
Voluntary abandonment	15 days in advance
Conviction of an indictable offense directly related to the franchise business	Effective immediately on delivery and receipt of written notice
Insolvency, or bankruptcy or receivership proceedings	Immediately on written notice
Default in payment, or failure to account for sale proceeds owed to the franchisor or its subsidiary	Immediately on written notice
Falsified records or reports required by the franchisor	Immediately on written notice
Imminent danger to public health or safety	Immediately on written notice
Loss of the right to occupy the premises	Immediately on written notice

Non-renewal, remedies and waivers

Section 87-404(1) says the rule does not stop a franchise from providing that it is not renewable, or is renewable only if the franchisor or franchisee meets certain reasonable conditions. The agreement's own renewal terms therefore matter.

Under 87-409 a franchisee may sue for damages and, when appropriate, for injunctive relief, and "the prevailing party in any action" is entitled to costs including reasonable attorney's fees. That means fees can run either way. Section 87-408 makes the franchisee's substantial non-compliance a defense for the franchisor. Section 87-406(1) bars requiring a release or waiver of the Act's liability when the franchise is entered into. Under 87-404(2), an unreasonable noncompete is reformed by the court or arbitrator and not struck. No forum-selection rule was found.

Questions to look for in your own notice and agreement

Does the notice list all the reasons, and are they failures to comply with the franchise's requirements?
Which ground does it rely on, and does that ground allow immediate notice?
Does the agreement give a cure period, given that the Act does not?
Do your sales figures with the franchisor and your franchise share of gross sales meet the Act's tests?
Does the agreement say it is not renewable, or renewable on conditions?

The notice and the agreement control your own dates, and a lawyer licensed in Nebraska can advise. See also the notice of default explained, post-termination non-competes and state laws compared.