Termination of franchise and Breaches

Termination of franchise and Breaches

Termination of franchise and Breaches


Every franchise system must have a way for a serious breach by a franchisee to result in their termination. Some offences are less serious and will result in us discussing this with you, emailing you and issuing you a breach notice - if you receive one of these you need to rectify quickly otherwise termination can occur. Other offences such as dishonesty could result in immediate termination. If this happens the procedure is covered in the franchise agreement. Read the franchise agreement to get a full list of termination offences. Also consider that three breach notices within a franchise term whether rectified or not, could result in a termination.


This is a list of things likely to result in a breach notice which you need to put right:

  • Failing to pay bills on time to the franchisor
  • Failing to pay commission venues
  • Not visiting machines weekly - or not notifying us of your fortnightly sites
  • Very low payouts
  • Badly presented machines
  • Not attending to site or customer complaints in a timely manner
  • Failing to have P/L insurance
  • Failing to have machines electrically compliant
  • Failing to keep software locations and transactions up to date
  • Operating in another territory by mistake e.g., near a boundary in a city
  • Entering into a sale without notifying the franchisor

This is a list of things likely to result in an immediate termination:

  • Dishonesty in any form
  • Purchasing stock from other suppliers
  • Not declaring any machines income
  • Operating in another territory knowingly - not a boundary incursion