So you want to break up with a franchisee? It is not always as easy as just terminating the franchise agreement for a breach. The breach has to be serious enough to warrant the "break up".  Unless the breach falls within the exceptions in the Franchising Code of Conduct, you will need to first allow the franchisee a reasonable time to remedy the breach. The courts may find you are acting unconscionably if you terminate the franchise agreement for a relatively min...

We are often engaged by franchisees who want out! The reasons for this are varied.  They can include breaches of the franchise agreement by the franchisor, not making enough money, sick of it, don't get along with the franchisor, unreasonable demands of the franchisor, business not living up to expectations or promises and the list goes on. So, what can a franchisee do in these circumstances? If you want out of your franchise, we recommend speaking directly with the fr...

The scenario: 1. a buyer is buying an existing franchised business from an existing franchisee; 2. the franchisor requires ther buyer to enter into a new franchise agreement rather than a transfer or assignment of the existing franchisee's franchise agreement. The question: Is the buyer entitled to a seven day cooling off period? The Law: The Franchising Code of Conduct is clear that a franchisee has a 7 day cooling off period from the earlier of entering into t...