The imbalance of position between franchisor and franchisee is a problem that often arises in the franchise business world. Franchisors have a more dominant position, especially in determining the contents of the agreement, rights, obligations, and implementation mechanisms until the end of the franchise agreement. This dominant position often places franchisees in a weak position, especially in terms of legal protection in the event of a dispute. One form of inequality that often becomes a problem is unilateral termination of the agreement by the franchisor which can have serious consequences for the franchisee. The impact is not only in the form of large financial losses but also damage to the business reputation and loss of consumer and business partner trust. This study examines two main problems that often occur in franchise business disputes, namely first, how to apply the concept of unlawful acts (PMH) and breach of contract in the context of unilateral termination of the franchise agreement by the franchisor; and second, the form of legal responsibility that can be imposed on the party who unilaterally terminates the franchise agreement. The purpose of this study is to provide a comprehensive understanding of the application of PMH elements and breach of contract in franchise business disputes, identify the appropriate form of legal responsibility, and provide direction to the parties involved in understanding the risks arising from unilateral termination. The results of the study indicate that unilateral termination carried out by the franchisor can be considered an unlawful act and breach of contract. In this situation, the franchisee has the right to file a claim for compensation for the losses suffered. The balance of rights and obligations between the franchisor and the franchisee must be a primary concern in making an agreement. The contract made must reflect the principles of fairness, honesty, and transparency to protect all parties. The research method used is normative juridical with a statutory regulatory approach and legal literature analysis. This study also utilizes case studies to strengthen arguments related to the application of law in real cases.