Can I get out of a franchise agreement early?

Common question · Franchising Law · New Zealand · 23 October 2026

General information from Lawmateanz

It depends on the agreement. Most franchise agreements set out when and how they can be ended, and leaving early without a right to do so can make you liable for damages.

Common options are selling the business with the franchisor's approval, negotiating an exit, or relying on a breach by the franchisor.

Watch for restraint of trade clauses, which can stop you running a similar business nearby for a period after leaving.

Get legal advice before taking any steps, and check whether the agreement requires mediation.

Written by Lawmateanz, not by a lawyer. General information only, not legal advice about your situation. For advice about your own matter, talk to a lawyer.

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