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Welcome to the ACCC > For businesses > Industry codes of conduct > Franchising Code > Frequently asked questions > 21. What if the franchisee wants to terminate their franchise agreement before it expires?

21. What if the franchisee wants to terminate their franchise agreement before it expires?

Before an agreement expires, a franchisee can terminate it in the following circumstances:

  • where the termination occurs during the cooling-off period (see question 19)
  • where the franchise is transferred to another party (see question 20)
  • where the franchise agreement allows for this.

If the franchise agreement is silent on whether the franchisee can terminate, the franchisee should consider negotiating with the franchisor to include this right before entering into the agreement.

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