At the end of the first term of 5 years, if you have adhered to the operations manual and we have not had any serious issues with you in the first term, it's very likely you will be offered a second term of 5 years. You will need to re-sign the then current franchise agreement.

At the end of the second term (10 years) if we are still operating as a franchise system we may offer you another term of any length under the then current franchise agreement. Because 10 years is so far into the future we can't say for sure where the franchise will be at. Our intention right now is to continue indefinitely, but the franchisor business may have new owners and directors, and no one can really predict market changes for any business in 10 years.

You need to ensure that you have well and truly earned your investment back a few times over by the time 10 years has passed. The nature of business is that the people you are dealing with now may not be the people you will be dealing with in 10 years. We wish our legacy as directors to be that any future director of this company will deal with you fairly and achieve a mutually acceptable outcome to any end. If we don't issue a new agreement - perhaps the franchise is no longer viable and we don't see ourselves involved for another 5 years - then you may just carry on as an independent operator.

The most likely (but not guaranteed) scenario at the end of 10 years is that the then directors will issue a new franchise agreement and a new term to you if all requirements are met.

Currently we have franchisees in NZ approaching 15 years running, and we are allowing them to sell with 5-year terms granted by us to the new owners. In addition, we have never forcibly terminated a franchisee - rather we always try to achieve a mutually acceptable exit.

Please read the franchise agreement for further details on end of term.