A franchise agreement may be cancelled after the ten day cooling off period has expired, if:
- the agreement itself is invalid, or
- where one of the parties has been induced to enter into it by a misrepresentation by the other, or
- where one of the parties has committed a material breach of the agreement.
If a franchise agreement contravenes, or does not comply with, the requirements of the CPA or the regulations, including the stipulations of the regulations in respect of deposits and initial payments, the agreement will be invalid, either in total or to the extent of the contravention. In addition, the provisions of sections 48(1), 51(1) and 65(2), dealt with above, will apply in the same way as where no agreement is concluded, or where the agreement is cancelled during the cooling off period. In other words, a franchise agreement may not provide, without qualification, for payment of a non-refundable deposit.