Check the cooling-off end date when a franchise is transferred
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Record the date the new franchisee became the franchisee and the date they took or will take possession and control of the business. Mark whichever is earlier. List money paid to the outgoing franchisee and to the franchisor, and any reasonable expenses set out in the transfer agreement or the franchise agreement. Do not write a termination notice.
- What the lawyer must review
- The lawyer decides which date ends the period and writes any notice. On a transfer, the new franchisee can terminate by written notice by whichever is earlier: 14 days after becoming the new franchisee, or the day they take possession and control. If they end during that period, the outgoing franchisee must refund money paid under the transfer agreement within 14 days, less reasonable expenses set out in the transfer agreement, and is reinstated if possible. The franchisor must refund the new franchisee within 14 days, less reasonable expenses set out in the franchise agreement. This is not the 14 days from signing a new agreement, and it is not the 14 days after lease documents.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | Record the date the new franchisee became the franchisee and the date they took or will take possession and control of the business. Mark whichever is earlier. List money paid to the outgoing franchisee and to the franchisor, and any reasonable expenses set out in the transfer agreement or the franchise agreement. Do not write a termination notice. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- The period ends on the earlier of 14 days after the transfer and the day of possession and control.
- The outgoing franchisee and the franchisor each have a 14-day refund, and each may deduct only expenses set out in the relevant agreement.
- Do not use the 14 days that run from signing a new agreement, or the lease-document period.
Sources
- ACCC, ending a franchise agreement · 2026-10-22
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.
Related tasks
Draft or review a franchise disclosure document against the prescribed headingsCheck the franchisor's disclosure and any registration the jurisdiction requiresDraft or review a franchise agreement from the disclosure and the term sheetBuild a franchisee due-diligence issues list from the disclosure pack