The franchisor compliance manual

Notice of end of term arrangements

The Code requires you to notify a franchisee, in writing, as to whether you intend to either extend the franchise agreement or enter into a new agreement when the term of the agreement ends.

  • If the term of the franchise agreement is six months or longer, you must notify the franchisee of your decision at least six months before the end of the term of the franchise agreement.
  • If the term of the franchise agreement is less than six months, you must notify the franchisee of your decision at least one month before the end of the term of the franchise agreement.

If you intend to extend the franchise agreement, you must include a statement in the notice to the effect that the franchisee may request a copy of the disclosure document.

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