Franchise Act 1998 · Updated to 1 Nov 2023 · Part IV · Conduct of Parties and Termination of Franchise Agreement
33. Earlier termination of franchise term
Feedback & supportNotwithstanding section 25, a franchise term may be terminated before the expiry of the minimum term of five years in the following circumstances:
franchise
“franchise” means a contract or an agreement, either expressed or implied, whether oral or written, between two or more persons by which— Franchise 9 (a) the franchisor grants to the franchisee the right to operate a business according to the franchise system as determined by the franchisor during a term to be determined by the franchisor; (b) the franchisor grants to the franchisee the right to use a mark, or a trade secret, or any confidential information or intellectual property, owned by the franchisor or relating to the franchisor, and includes a situation where the franchisor, who is the registered user of, or is licensed by another person to use, any intellectual property, grants such right that he possesses to permit the franchisee to use the intellectual property; (c) the franchisor possesses the right to administer continuous control during the franchise term over the franchisee’s business operations in accordance with the franchise system; and (d). (e) in return for the grant of rights, the franchisee may be required to pay a fee or other form of consideration. (f).
where both parties to the franchise agreement agree to a termination; or
franchise agreement
“franchise agreement” means a contract or an agreement made between a franchisor and a franchisee in respect of a franchise in return for any form of consideration but does not include any contract or agreement made for the purpose of direct selling as provided by the Direct Sales Act 1993;
where the court has decided that there are certain conditions in the franchise agreement which merit the agreement to be terminated earlier than the minimum term.