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Termination

Agents & Licencees » Termination

The Franchise Agreement contains specific terms and conditions relating to the termination of the Franchise Agreement. These terms and conditions must be carefully examined prior to entering into the agreement. The franchisor may at its option terminate the Franchise Agreement upon the occurrence of certain events including if:
(the following is NOT inclusive and is intended only as a summary)

If the franchisee

• fails to disclose the true and correct turnover for any month
• commits any breach of any obligation owed by it to the franchise whether directly or indirectly
• commits any act which constitutes an act of insolvency in terms of any applicable insolvency law
• undertakes any matter or thing which may have the effect of prejudicing the franchisor or causing the Group damages
• executes a surety or co-principal debtor obligation or any act of intercession, cedes, assigns or alienates the lease agreement without the Franchisor's consent.
• signs as security for the debts, liabilities or obligations of any third party, without the Franchisor's prior written consent.
• if either party to the Franchise Agreement breaches any material terms and fails to remedy such breach within 7 (seven) days of having been given written notice thereto by the other party, then the other party may in addition to and without prejudice to any rights which it may enjoy at law, cancel the agreement forthwith and on notice in writing to the defaulting party. If the franchisee is in breach, the franchisor has a minimum entitlement to 36months of royalty income based upon the average for the previous 6 months royalty earned.
• The franchisee shall not cede, assign, mortgage, change, transfer or otherwise encumber or deal with this agreement or any benefit or right under the franchise agreement without prior written consent of the franchisor.
• The Franchisor's interests dictate that financial controls and restraints of trade be included.
• Other breaches of the agreement may result in monetary penalties.
• A proposed sale of the business is governed by detailed provisions.
• Where the franchisee is a legal entity, controlling members must underwrite the obligations of the entity.