The business is at risk and as such you should definitely consult a local attorney before proceeding. Naturally any writings are helpful; if no writings exist, any evidence that they consented or assented may be beneficial. What may be pertinent here may be the state's franchise law. Despite the absence of a formal franchise agreeement (and even if your client does not think of himself or herself as a franchise), the state's statutory elements to establish a franchise may be met. If so, they may or may not be able to terminate the franchise and even if the law permits the termination, typically state statute will provide that the franchisor has to buy out the franchisee.

Tell your client to speak to an attorney asap because this is the type of case where the person who 'wins the race to the courthouse' may prove to be the prevailing party.

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