Franchise agreement termination is a complex area. In this article we look at the options available to franchisors and franchisees who want to exit a franchise agreement early.

Under the terms of a franchise agreement, a franchisee is given the right to operate the franchise business for a period of time. When the time period expires, the franchise agreement "expires". [What is a Franchise Agreement?]

A franchisor may terminate a franchise agreement early (that is, before the franchise agreement expires), if the franchisor follows the procedures set out in the franchise agreement and the Franchising Code of Conduct (the Franchising Code). [What is the Franchising Code of Conduct?]

If a franchise agreement contains provisions allowing a franchisee to terminate the franchise agreement, a franchisee may terminate a franchise agreement early if the franchisee follows the provisions set out in the franchise agreement.

There are also limited circumstances where a franchisor or franchisee can terminate a franchise agreement at common law. We have not dealt with these circumstances in this article.

Termination Under the Franchising Code of Conduct
Termination Clauses in Franchise Agreements
Legal Procedures for Terminating A Franchise Agreement

Selling a franchise business in Australia can be a complex process, especially when it comes to understanding the legal and financial aspects involved.

In this article we'll explore how to navigate the legal and financial aspects of selling your franchise business in Australia. From understanding how the Franchising Code of Conduct and your franchise agreement apply to the sale as well as considering the value of the franchise business, we will provide you with information that will help to make the journey smoother.

The last two and a half years have been tough for small businesses including franchises.