You can do this within seven days after signing or paying money under the agreement (whichever comes first). This is often referred to as your right to ‘cool off’. If you buy a franchise but change your mind a year later, it might cost you a lot of money to end the franchise agreement early.

If you have paid some money to the franchisor and you change your mind within seven days, the franchisor can keep some of your money but only if:

• this is included in your franchise agreement; and
• if the money is for reasonable expenses.

For example, if they gave you some training about the franchise, the franchisor may be able to keep all or some of your money to pay for this.

The franchisor has to give you back the rest of your money within 14 days.

However, before you make any payments always check what reasonable expenses the franchisor will be keeping.

This right to terminate in the ‘cooling off’ period only applies to new franchise agreements and not renewals, transfers or extensions of term or scope of an existing franchise agreement.