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Do I need to renew my Franchisee's Agreement?
Do I need to renew my Franchisee's Agreement?
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Question
Do I need to renew my franchisee's agreement?
Answer
A Franchise Agreement usually expires in ten years. At the end of this period, the Franchise Agreement allows the Franchisee to execute a new agreement, for a further period of ten years (given that the Franchise is not in breach of the Franchise Agreement).
Franchisors must notify a Franchisee (irrespective of whether the Franchisee has provided notice of their intention to renew under the Franchise Agreement), at least 6 months before the end of the term of the Franchise Agreement, of their decision to renew or not to renew the Franchise Agreement.
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