20 Years. $890,000. They Walked Away With Nothing.

A franchisee spends 20 years building a business. Early mornings, late nights, loyal customers.

Head office calls. They’re renewing for another 10 years.

A few days later, a second call. Head office changed their mind. Find a buyer, or the business goes back to them.

Every buyer gets rejected. The deadline passes. The franchisee walks away with nothing — after putting in $890,000.

This actually happened. It’s a 7-Eleven franchise, and it’s the story behind a recent Courtside Conversations episode by Little Boomers Basketball founder, Emile Koorey.

Watch the Full Episode

What Actually Happened

A Current Affair ran a story on 7-Eleven taking franchises back. It went viral. People were angry.

Current affair pieces are always one-sided. There’s another side here.

A few years ago, 7-Eleven was sold for $1.7 billion to a Japanese company. The new owner wants corporately owned stores, not franchised ones. They keep 100 percent of the profit that way.

So they’ve been buying territories back. One franchisee finished their 10-year term, applied to renew, and got knocked back. They proposed buyers. All rejected. Deadline passed. They lost the business.

“It is unfair, right? However, with franchising, that’s the game of franchising.” — Emile Koorey

Renewal Is Not Automatic

Most people think a franchise agreement lasts forever. It doesn’t.

Every agreement runs for a fixed term. Little Boomers Basketball runs 5 years. 7-Eleven runs 10.

At the end of term, renewal isn’t guaranteed, no matter how well the business performed. It depends on what’s written in the agreement.

A few conditions that usually apply: apply 6 months before the term ends. Don’t be in breach when you apply. The franchisor can reject renewal if you’re in breach, or if you don’t produce an approved buyer.

Three Ways a Franchise Term Can End

One: you find a buyer, head office approves them, you sell and keep the equity.

Two: head office buys the territory back at an agreed price. Most agreements give them first right of refusal.

Three: head office takes the territory back. No sale, no buyback, no payout.

That third option is what happened to the 7-Eleven franchisee.

Selling a Franchise Isn’t Like Selling a Car

You can’t just find a buyer and hand over the keys.

Every buyer has to pass the franchisor’s vetting process. At Little Boomers Basketball, that’s a discovery call, a business presentation, a 3-day workshop, and a reference check.

If a buyer doesn’t meet the standard at any stage, head office can say no. It’s not personal. It’s written into the agreement.

Selling also requires written consent, the franchisor’s first right of refusal, a buyer who meets their criteria, and no active breach. The 7-Eleven franchisee got stuck right there — their buyers were rejected, and nobody outside the room knows why.

What Counts as a Breach

A breach can end an agreement early, regardless of how many years are left.

Common ones: late fees, ignoring the operations manual, underpaying staff, missing superannuation.

That last one carries real weight. Baker’s Delight was reportedly fined around $600,000 after franchisees underpaid staff. Regulators have said franchisors can now be fined too, if they knew and did nothing.

Payday super kicks in July 1, 2026. Franchisors will need to actively enforce it across their network.

Goodwill Stays With the Brand

Goodwill is the reputation and loyal customers built over years. It’s real, but it’s intangible, and it legally belongs to the franchisor.

“The goodwill stays with the brand. It stays with the franchisor. The goodwill is not attached to the franchisee.” — Emile Koorey

Twenty years of goodwill. If the agreement ends without a sale, none of it is compensated.

Common Mistakes People Make

“A Franchise Agreement Lasts Forever”

It doesn’t. Every agreement has a fixed term, and the length varies by brand.

“Good Performance Guarantees Renewal”

It doesn’t. Renewal depends on the agreement’s terms, not how well the business is run.

“Selling a Franchise Works Like Selling Anything Else”

It doesn’t. Every buyer has to pass the franchisor’s vetting process first.

“Breach Only Means Not Paying Fees”

Underpaying staff or skipping the operations manual counts too, and can end an agreement early.

“Goodwill Automatically Gets Paid Out”

In most agreements, it doesn’t. It stays with the brand.

“One News Story Tells the Whole Story”

It rarely does. There’s usually a franchisor side that doesn’t make the headline.

Key Takeaways

• Franchise agreements run for a fixed term, not forever
• Renewal depends on the agreement, not just performance
• There are only three outcomes at the end of a term: sell, get bought back, or hand it back with nothing
• Selling requires the buyer to pass the franchisor’s vetting process
• Breaches like late fees, underpaying staff, or missing super can end an agreement early
• Goodwill built over years usually stays with the franchisor
• Reading your renewal, sale, and breach clauses before signing is your best protection

FAQ: Common Questions People Ask

Is it legal for a franchisor to not renew my agreement?

Yes, if the agreement gives them that right. Most do. It’s written in from the start.

What’s the difference between a buyback and having my franchise taken back?

A buyback means you’re paid an agreed price. Being taken back after a breach or failed sale usually means no payout.

How do I protect myself from something like this?

Read the renewal, sale, and breach sections before signing. Ask the franchisor directly what qualifies a buyer.

Does Little Boomers Basketball have this same risk?

Every franchise agreement has renewal and breach terms, this one included. The difference is transparency — terms are explained upfront, and the vetting process protects genuine franchisees on both sides.

What happens to the value I’ve built if I can’t renew or sell?

In most agreements, goodwill stays with the franchisor. That’s why understanding exit terms matters as much as revenue potential.

Keen to Learn More?

If this raised questions about franchise agreements, our article on What Happens After You Sign A Franchise Agreement covers it in more detail.

You can also read Can You Really Sell Your Franchise? and ACCC Franchise Rules: What Every Australian Buyer Needs to Know.

If you want to talk through how renewal, sale, and exit terms actually work inside a Little Boomers Basketball franchise, book a free Discovery Call with Emile.

The call is free, there’s no pressure, and it’s just a conversation to find out if this fits your life.