How to renew a franchisees agreement?
In accordance with the Franchising Code of Conduct you need to comply with the below arrangements:
You must notify the franchisee in writing if you intend to either extend the agreement or enter into a new agreement.
You need to give notice of at least 6 months to the franchisee.
In practice. most issues will reside around the Fee Structure moving forward. As their contract will most likely have a lower fee structure.
This is where as a Franchisor you will need to negotiate with your franchisee to achieve the best outcome for both parties.
If you need further guidance, please contact your Divisional Manager at the National Office.