The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
How often can a franchise agreement be renewed?
It depends on what the franchise agreement says. Most agreements in the UK are granted for five years. You would expect these agreements to be renewable at least twice, so that a franchisee is ‘guaranteed’ a 15-year term.Of course, there are conditions attached to any such renewal. Usually these conditions are that the franchisee must have performed to the satisfaction of the franchisor, not be in breach of the franchise agreement at the time of renewal and not have committed such a serious breach of the franchise agreement that the franchisor would have terminated. In addition, the renewing franchisee would have to enter into the franchisor’s then current franchise agreement, which could be very different to the agreement the franchisee wants to renew.The British Franchise Association likes to see at least two guaranteed renewals and also likes to see that on a transfer the incoming purchaser of the franchise business can also renew on two occasions.With a 10-year franchise term, you would expect one renewal in favour of the franchisee. For longer terms, such as the lengthy terms granted in relation to some fast food franchises, which require substantial upfront shop fitting expenditure, franchisees would not generally have a right to renew.Having said all of the above, if a franchisee is performing well franchisors are likely to renew even when under no obligation to do so.
You might also be interested in
Answered by John Pratt
John Pratt writes: First, you have to work out who is responsible for the poor performance because... read more
Answered by Louise Harris
Louise Harris writes: In respect of renewal fees, every franchise is different. Prospective franchisees are guided to... read more
Answered by Alan Wilkinson
Alan Wilkinson writes: An experienced franchisor will know what works and what doesn’t work when marketing its... read more
Answered by Shelley Nadler
Shelley Nadler writes: It’s possible, even if a franchisee is granted an exclusive territory. The nature and extent... read more
Exciting Franchise Opportunities
Companies to Consider
ChipsAway International Ltd
£600,000 to £800,000
In excess of £70,000
60% bank funding, subject to status
Ask for more information
Third party and personal investment
Guardian Angel Carers
£1,000-plus per week
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added 2 years ago | 2 min read
Added 15 hours ago | 2 min read
Added one day ago | 2 min read
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
What Franchise Newsletter
Keep up to date with all the industry news