{"ok":true,"canonical_url":"https://dealroom.so/glossary/early-termination-clause","api_url":"https://dealroom.so/api/public/glossary/early-termination-clause","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"early-termination-clause","term":"Early termination clause","group":"People and paperwork","definition":"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 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.","url":"https://dealroom.so/glossary/early-termination-clause","official_sources":[],"related":[{"slug":"long-term-lease","term":"Long-term lease","url":"https://dealroom.so/glossary/long-term-lease"},{"slug":"lease-agreement","term":"Lease agreement","url":"https://dealroom.so/glossary/lease-agreement"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"question":"How does the SBA review franchise agreements for compliance if there are unusual clauses regarding termination or transfer?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-review-franchise-agreements-for-compliance-if-there-are-unusual-clauses-r"},{"question":"What if a proposed franchise agreement includes a clause restricting the borrower's operational control or management?","url":"https://dealroom.so/for-lenders/questions/what-if-a-proposed-franchise-agreement-includes-a-clause-restricting-the-borrower-s-operat"},{"question":"Can a seller note on full standby have an acceleration clause if the business defaults on the SBA loan?","url":"https://dealroom.so/for-lenders/questions/can-a-seller-note-on-full-standby-have-an-acceleration-clause-if-the-business-defaults-on-"},{"question":"Under what conditions can a seller note on full standby be repaid early?","url":"https://dealroom.so/sba-7a/questions/under-what-conditions-can-a-seller-note-on-full-standby-be-repaid-early"},{"question":"Are there penalties if I pay off my SBA 7(a) loan early?","url":"https://dealroom.so/sba-loans/basics/are-there-penalties-if-i-pay-off-my-sba-7-a-loan-early"},{"question":"Can a seller note be repaid early if the business performs exceptionally well?","url":"https://dealroom.so/sba-7a/questions/can-a-seller-note-be-repaid-early-if-the-business-performs-exceptionally-well"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Early termination clause","url":"https://dealroom.so/glossary/early-termination-clause","source_type":"DealRoom Data"}}