Record the franchise exit clearly and properly

An agreed exit can still unravel if the legal record is incomplete. A franchisee exit deed is usually the document that pulls the key points together in one place, including what is being paid, when the franchisee must stop using the brand, what happens to confidential information, and whether either side is giving releases. If those points are left in emails or informal notes, there is more room for later disagreement. The deed gives the exit a clearer legal framework and helps show what each party actually agreed to do.

The content depends on the arrangement, but a franchisee exit deed often deals with the exit date, any settlement amount or final fees, return of manuals and branded materials, de-identification of premises or online channels, confidentiality, releases, and any restraints or non-solicitation obligations that continue after exit. It may also address stock, equipment, customer handover issues, and whether there are any surviving obligations under the franchise agreement. The drafting needs to line up with the existing franchise documents and the commercial deal the parties have reached.

The drafting usually turns on the franchise agreement already in place, the reason for the exit, and what has been negotiated between the parties. For example, an early negotiated exit may need careful wording around releases, unpaid amounts, and post-exit restrictions, while a sale or transfer scenario may raise different handover issues. We will usually need to see the franchise agreement and any relevant side documents so the deed matches the rights, fees, control points, and brand protections already built into the franchise relationship.

A template may be useful for orientation, but it often misses the operational details that decide whether the wording works for your business. However, franchise exits often involve details that generic wording misses. The deed may need to reflect the original franchise agreement, any personal promise, settlement terms, intellectual property restrictions, and practical exit steps such as signage removal or return of operational material. If the wording does not match the actual arrangement, it can create uncertainty about what survives after exit and what has been released. A tailored deed is usually more useful where money, brand protection, or ongoing restrictions are part of the deal.

Timing depends on how settled the commercial position already is and how quickly the underlying documents are available. If the exit terms are largely agreed, the deed can usually be turned around more quickly than a matter where key points are still being negotiated. After engagement, we review the franchise documents, confirm the agreed exit points, and prepare the deed for comment. If the parties are still debating major terms, that can extend the timeline. Ongoing negotiation support or representation after drafting is not included unless separately arranged.

Just submit an enquiry via this page or click the 'get started' button on our website to submit an enquiry. After you've submitted an enquiry, one of our legal consultants will review your enquiry within 1 business day and get in touch to get a better idea of exactly what you are looking for.

Then your legal consultant will send through an email with a bit more information about the services you need, along with a fixed fee quote setting out costs, scope of the service and timing. Have a read through it, and if you're happy with the scope, you can accept and sign our engagement letter online - easy!

Once you've formally accepted, we'll connect you with a specialist lawyer and they will work with you to complete your project. They will contact you by email or phone if they need to get in touch.

Sprintlaw works on fixed-fee pricing wherever possible, so you can review the scope and cost before you decide whether to proceed. For the Franchisee Exit Deed service, pricing starts from $900.00.

After you enquire, a legal consultant will confirm what is included, the expected timing and whether any extra work is needed before you engage us.

We operate completely online, which means we can help you wherever you are in New Zealand. We have office spaces in Sydney, and in Melbourne, but our use of technology allows our team members to work remotely from around the world. Our legal team are mostly based in Sydney, Melbourne, Brisbane and Perth. We also have a London office for Sprintlaw UK.

Our legal team is made up of experienced lawyers, who are specialists in various areas of law and hold an Australian legal practising certificate. None of our Sprintlaw lawyers are New Zealand qualified lawyers and they do not currently hold a New Zealand practising certificate.

They provide legal services working remotely from Australia via our 'legal consultancy' model, through which (under section 6 and section 35 of the New Zealand Lawyers and Conveyancers Act 2006) our Australian legal team are permitted to provide legal services to New Zealand businesses provided they do not provide services in certain 'reserved' areas of law. You can read our FAQ page to learn a bit more about our 'legal consultancy' model.

Given the strong similarities between Australian and New Zealand law, and the areas of law in which we practice (being small business and startup law), we do not view the fact that our lawyers have not qualified in New Zealand as having any substantive impact on the quality of our service. We are committed to ensuring that we provide high quality, affordable legal services to all our New Zealand clients.

Our legal team have all trained at leading firms, but have left the traditional corporate law world to join us on our mission to create a new and better way of delivering legal services. They have specialist expertise in technology law, intellectual property law, contract drafting and review, corporate law and commercial law.