Glossary · People and paperwork
Early termination clause
In short
A provision in a contract, like a lease, that allows either party to end the agreement before its scheduled end date under specific conditions. Understand its implications for your business.
What it means in a deal
In a long-term lease, an early termination clause could impact your business stability. While you generally want a stable lease, ensure you understand any conditions under which the landlord could terminate early, or if you have the flexibility to exit if the business needs to relocate. Review this with your attorney.
Related terms
Common questions about Early termination clause
- How does the SBA review franchise agreements for compliance if there are unusual clauses regarding termination or transfer?
- What if a proposed franchise agreement includes a clause restricting the borrower's operational control or management?
- Can a seller note on full standby have an acceleration clause if the business defaults on the SBA loan?
- Under what conditions can a seller note on full standby be repaid early?
- Are there penalties if I pay off my SBA 7(a) loan early?
- Can a seller note be repaid early if the business performs exceptionally well?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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