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Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 23068
Experience:  38 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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The term of my franchise agreement is 5 + 5 and if I seek

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The term of my franchise agreement is 5 + 5 and if I seek not to renew it, the contract will expire 11th May 2019. On the 31st December 2015, my franchise agreement was assigned by Cafe2U (RFG) to CCBS NZ Ltd. The single owner of CCBS NZ Ltd has a contract that expires with RFG 31st December 2017. We have since found that RFG carried out due diligence for 18 months prior to RFG purchasing Cafe2U. I cited the disclosure document 11th December 2013 which did not disclose that there was an intention to change the ownership of Cafe2U, I started business 12th May 2014. It was announced in October 2014 that RFG had purchased Cafe2U. Where do I stand if the master franchise is not renewed?

Hi

I am a New Zealand lawyer based in Wellington. I will be helping you with your questions today

If the master franchise is not renewed then you have the right to insist that your existing contract with Cafe2U is continued even if the assignment has taken place, because the assignee picks up all the rights and obligations of the previous owner. So if they try to close this down or change the terms you can sue for breach of the contract, and you are entitled to claim all your rights up to 2019

Chris The Lawyer and other New Zealand Law Specialists are ready to help you
Customer: replied 26 days ago.
Thanks for this as there are 15 of us in this situation.

I guess you need to ask some questions collectively so that the situation can be clarified

Customer: replied 11 days ago.
Can the master franchisee change the terms for calculating the annual increase of the franchise fee?
That depends on whether the contract permits this. Normally contracts require both parties to agree to a change but a franchise contract may specify who can change those fees or the terms.