Explanation

The Franchise Agreement is a legal document lasting for five years and renewable at the end of that time, by agreement between Franchisor and Franchisee.

The Franchise Fee is a one-off fee

The Monthly Payment is a payment for the on-going services of the Franchise paid by the Franchisee every month after the third month of the Agreement.

Termination relates to ending the Franchise Agreement before its end date.

Termination by the Franchisee

Prior to commencement of payment of the Monthly Fee:

The Franchisee shall inform the Franchisor that they are considering not fully instigating their franchise and discuss with the Franchisor their reason for termination or inform the Franchisor immediately the Franchisee has made the decision not to continue.

In this instance the Franchisee shall sign a Deed of Termination.

This releases the Franchisee from the Franchise Agreement.

Once the Monthly Payments have commenced:

Once monthly payments for services have commenced to be paid by the Franchisee to the Franchisor the Franchisee becomes obligated to make these payments every month for the rest of the term.

In this instance the Franchisee shall sign a Deed of Termination and make all monthly payments due (until the termination of the agreement).

It is the responsibility of the Franchisee to pay all legal fees incurred by themselves and the Franchisor for the early termination of the Agreement.

This releases the Franchisee from the Franchise Agreement.

Termination by the Franchisor

This will be instigated when the Franchisee has broken the terms of the Franchise Agreement.

It will always be dealt with on a case by case basis.

All legal fees incurred by the Franchisor or Franchisee are the responsibility of the Franchisee.