13Cooling off period

13 Cooling off period

(1) A franchisee may terminate an agreement (being either a franchise agreement or an agreement to enter into a franchise agreement) within 7 days after the earlier of:

(a) entering into the agreement; or

(b) making any payment (whether of money or of other valuable consideration) under the agreement.

(2) Subclause (1) does not apply to the renewal, extension, extension of the scope or transfer of an existing franchise agreement.

(3) If the franchisee terminates an agreement under subclause (1), the franchisor must, within 14 days, return all payments (whether of money or of other valuable consideration) made by the franchisee to the franchisor under the agreement.

(4) However, the franchisor may deduct from the amount paid under subclause (3) the franchisor’s reasonable expenses if the expenses or their method of calculation have been set out in the agreement.