Cooling-off waiver
What it means
The Franchising Code gives a new franchisee a 14-day cooling-off period after signing, during which they can terminate and have money returned, less the franchisor's reasonable expenses. Recent changes introduced a limited ability to waive that period for new agreements where specific conditions are satisfied.
A waiver is not something to sign lightly, it removes an important safety net. It exists mainly for situations where a franchisee has already done extensive due diligence and wants to proceed without delay.
In practice
Do not waive cooling-off just because a franchisor asks. Only consider it after full due diligence and legal advice, and understand that once waived, you lose the right to change your mind within that window.
A real example
An experienced multi-unit operator adding a fourth outlet of a system he already runs waives the cooling-off period to open faster, on his lawyer's advice, because he already knows the system intimately.
Cooling-off waiver, FAQs
Can I waive the cooling-off period on a franchise?
In limited circumstances, yes, recent Code changes allow a new franchisee to waive the 14-day cooling-off period where defined conditions are met. It removes a key protection, so take advice first.
Should I waive cooling-off if the franchisor asks?
Be very cautious. Cooling-off lets you exit shortly after signing. Only consider waiving it after complete due diligence and independent legal advice.
See the full franchise glossary, the Fee Index or our buyer guides.