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Can a business close without notifying the employees

Jacksonville, NC |

can a franchise business close down without notifying the employees

independantly owned /part of a franchise chain

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Attorney answers 4


Unless the franchise agreement required notice or this is a business with a great deal of employees (to be covered under separate federal law), an employer is not required to provide notice, severance, or anything other than earned pay due which must be paid in the time as required under your state law.

This answer is for informational purposes only and is not legal advice regarding your question and does not establish an attorney-client relationship.


If it is a privately held company without ownership interest maintained partly (like a co-op), yes, it can be closed without notice to the employees.

The information provided by Attorney Matthew V. Silva is based upon the generic and ambiguous facts presented in short questions. Without a full consultation with an attorney, you should not rely upon any information presented in this forum. The intricate facts of every case are different. The information provided is not legal advice and should not be the basis of any decision without the actual guidance of an attorney. Further, any information provided by Attorney Matthew V. Silva should not be perceived as a willingness to represent you or actual representation. If you would like to speak with Attorney Matthew V. Silva, please call Silva and Sweet, PLLC at 910-333-9833 or visit

Matthew Vernon Silva

Matthew Vernon Silva


That should have read that if ownership interest is not maintained partly by employees, then it can be closed without notice. What company is closing?


If the franchise employees more than 100 employees it is likely covered by the federal WARN Act which requires employers to provide 60 day notice before closing.

Kirk J. Angel is an experienced North Carolina licensed attorney who focuses his practice on employment law. Mr. Angel, who has focused on employment law for more than 14 years, represents clients throughout North Carolina and more information about him is available at This response is for general informational purposes and does not constitute legal advice. Additionally, this response does not create an attorney client relationship. If you need legal advice, please contact a lawyer in your state who practices in the appropriate area.

Marilynn Mika Spencer

Marilynn Mika Spencer


Mr. Angel referred to the WARN Act. The federal Worker Adjustment and Retraining Notification Act, 29 U.S.C. §§ 2101 et seq. (WARN or WARN Act) requires certain employers to give workers advance notice if they will lose their jobs through company or department closure, or mass layoffs. This is to provide the employees with time to seek other employment or retraining. Sometimes, an employer provides this notice even when it has not yet decided there will be a layoff. This is because the employer wants to make sure it complies with the WARN Act because it faces steep penalties if it does not comply. At times, large layoffs or plant closing do not comply with the law. The first workers’ rights law organization to help employees in this situation was the Sugar Law Center, an affiliate of the National Lawyers Guild. The Sugar Law Center provides quality information and selected representation to employees facing a mass layoff or plant closing. You can contact the Sugar Law Center here: The U.S. Department of Labor has a Guide for Workers on the WARN Act. The Guide and contact information for Department of Labor officials are available at Another good summary is here:


It depends on a number of things, including the size of the business and the circumstances. Under the federal WARN Act, certain business are supposed to give employees advance notice of a closing. However, there are exceptions. You should consult an experienced employment attorney in your area.

This answer is provided for informational purposes only and should not be relied on as legal advice. You should be aware that no attorney-client relationship is established through this answer and none will be established without a personal consultation and the signing of an engagement agreement.

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