An anticipatory breach occurs when one party informs the other party of its intent to breach the contract. This often occurs when a franchisee states that they will be breaching some portion of the contract in the near future, usually terminating a franchise agreement before the agreed-upon term ends.  If a franchisee legitimately notifies the franchisor of its intent to close its franchised business, this would usually be considered an anticipatory breach depending on the level of sincerity in the notification.