2025 New Zealand Franchise Agreement Overview

Disclaimer: This is general information only and not legal advice. You should always seek independent legal, accounting, and business advice before making any decision.

Success Tutoring is becoming New Zealand's Newest & Fastest Growing Education franchise. Founded in Sydney, Australia - Success Tutoring is making waves in the education space. Based on the New Zealand Curriculum, Success Tutoring provides personalised English & Math tutoring on a membership, gym model approach to education.

You can access the updated franchise agreement here.

This Franchise Agreement Overview will cover the following:

1. Table of Contents
2. Termination Clauses
3. Franchise Payments
4. Franchisee Obligations
5. Franchisor Obligations

Below is the latest overview of the Success Tutoring New Zealand Franchise Agreement. In the spirit of full transparency, this breakdown gives prospective franchise partners a clear understanding of the key terms and obligations before moving forward.

Table of Contents

The Franchise Agreement is a legally binding document that sets out the rights, responsibilities and expectations of both the franchisee and Success Tutoring. It covers everything from fees and territory rights to marketing, operations, training and termination. Here's a breakdown of the core areas the agreement deals with:

1. Definitions, Cooling Off & Grant of Franchise

The agreement begins by defining key terms and explaining how the document should be interpreted. It includes the cooling off period, rules around termination during that time, and what happens with deposits. It also outlines how the franchise is granted, including: Territory rights, Limits on operating outside your area and Use of the Success Tutoring system.

2. Term & Renewals

It sets out the length of the franchise agreement, how renewals work, notice periods, conditions for renewal, and what happens if a franchise continues after expiry (holding over).

3. Roles & Responsibilities

Both parties have obligations:

1. Success Tutoring’s Obligations – support, training, manuals, systems, marketing guidance
2. Franchisee’s Obligations – operations, conduct, approved suppliers, marketing, IT requirements, legal compliance, staffing, reporting and customer service standards

4. Performance & Operations

The agreement covers: Minimum performance criteria, Operations Manual and how it must be followed, Training requirements (initial, ongoing, workshops), Products, services, suppliers and quality control and Equipment requirements and sourcing.

5. Fees & Payments

This includes, Initial franchise fee, Documentation fees, Royalties, Marketing and local spend, Renewal, relocation and transfer fees, Payment terms and minimum spend obligations.

6. Premises & Fitout

The agreement details, How premises are selected and approved, Leasing requirements, Responsibilities for fit out, refurbishment and maintenance, Franchisor access rights and Relocation conditions.

7. Branding & Intellectual Property

There are sections covering, Ownership of the IP and trademarks, Business name usage, Brand protection and Notification of IP threats.

8. Marketing & Local Promotion

The agreement sets the rules for, Local marketing spend, Opening promotions, Use of brand-approved materials, National or regional campaigns and Marketing fund (if activated).

9. People & Staffing

Franchisees must comply with Centre Manager requirements, Staff training and performance, HR policies, Uniforms and Recruitment processes.

10. Customer Data & Systems

This covers, Use and ownership of customer information, Software and IT requirements, Online conduct and National rewards and marketing programs.

11. Reporting, Records & Insurance

Franchisees must maintain Regular business reporting, Access to financial records, Insurances (public liability, workers comp, etc.), Claims procedures and Solvency statements and audits.

12. Confidentiality & Privacy

There are clauses around Use of confidential business information, Privacy obligations and Data management.

13. Restraints & Transfer Rules

The agreement outlines Restraint of trade after leaving the franchise, Rules for selling or transferring the business, Franchisor’s right of first refusal and Cooling-off on transfer.

14. Breach & Termination

It explains, What counts as a breach, When and how termination can occur, Franchisee’s right to request early termination, Dispute notification rules and Compensation and handover obligations after termination.

15. Disputes, Warranties & Indemnities

There are clauses covering, Dispute Resolution, Warranties and guarantees and Liability and indemnities.

16. General Legal Provisions

These include, Governing law, Notices and announcements, Assignment of rights, Further assurances, Costs and Special conditions (if any).

17. Schedules & Annexures

The back of the agreement includes important attachments like, Franchise details, Territory map and Success Pack contents.

Termination Clauses

No franchisee plans to breach their agreement, but it’s important to understand what happens if things go wrong. The Franchise Agreement outlines specific situations where Success Tutoring can end the agreement and in some cases, how a franchisee can request early termination themselves.

Here’s a breakdown in plain English.

1. If a Franchisee Breaches the Agreement and Doesn’t Fix It

If the franchisee (or anyone in their “Franchisee Group”) breaches the agreement, Success Tutoring can give them a Breach Notice explaining what went wrong and how long they have to fix it. This time period must be reasonable but doesn’t have to be longer than 30 days.

If the breach isn't fixed in that timeframe, Success Tutoring can terminate the agreement immediately by giving written notice.

2. If Success Tutoring Has to Fix the Breach Themselves

If the franchisee doesn’t fix the breach after being notified, Success Tutoring can choose to step in and fix the issue themselves. They don’t have to do this, but if they do, the franchisee must pay all costs involved.

3. Serious Situations Where Termination Can Happen With 7 Days' Notice (No Right to Dispute)

There are certain serious circumstances where Success Tutoring can end the agreement with just seven days’ written notice, and the franchisee cannot trigger a dispute to stop it.

These situations include where the franchisee (or related entity):

• Loses the licence required to operate the franchise.
• Becomes bankrupt or insolvent under the Companies Act.
• Abandons the business.
• is convicted of a serious offence.
• Endangers public health or safety.
• Is fraudulent.

In these cases, termination can proceed quickly and without the usual dispute process.

5. Situations Where the Franchisee Can Dispute a Proposed Termination

There are other types of serious misconduct where Success Tutoring can propose to terminate but the franchisee has the right to dispute it.

These include where the franchisee:

• Walks away from the business or abandons the franchise relationship.
• Runs the franchise in a way that endangers public safety or health.
• Is involved in fraud connected to the business.

In these cases, Success Tutoring must:

• Give a written Termination Notice explaining the proposed termination and the reasons.
• Allow the franchisee seven days to lodge a Dispute Notice if they disagree.

What happens next depends on whether a dispute is raised:

• If no dispute is raised within 7 days, the termination can proceed after that 7-day period.
• If a dispute is lodged, Success Tutoring must wait 28 more days before terminating.

6. If the Franchisee Wants to Terminate Early

Franchisees do not have an automatic right to walk away, but they can request early termination.

To do this, they must submit a written proposal to Success Tutoring that clearly includes:

• The reasons for wanting to terminate early.
• The proposed terms for ending the agreement.
• Any supporting evidence.

Once the request is received, Success Tutoring must:

• Consider it in good faith, and
• Provide a written response within 28 days.

If Success Tutoring refuses the request (or refuses the terms suggested), they must provide reasons but the reasons are up to them, as long as they are reasonable.

Franchise Payments

Like any franchise system, Success Tutoring has a structured fee model that covers setup, training, support, branding, and ongoing involvement in the network. Below is a breakdown of the key fees and when they are payable.

1. Initial Franchise Fee

$50,000 + GST
This is the main upfront fee you pay to secure your franchise territory and enter the network. It is due on or before signing the Franchise Agreement.

2. Documentation Fee

$3,000 + GST
This covers the legal and administrative costs associated with preparing franchise documents. It is paid on or before the date of the Franchise Agreement.

3. Success Pack Fee

$15,000 + GST
This payment contributes to your initial setup and onboarding. It typically includes things like branding assets, software access, onboarding support, and training-related materials.

4. Design & Documentation Fee (if applicable)

$2,000 + GST
If Success Tutoring needs to prepare fitout documentation or design plans for your location, this fee applies. It must be paid before the fitout begins.

5. Opening Promotion Spend

$15,000 + GST
This amount is allocated to pre-opening marketing activities to help generate awareness and enrolments before launch. Franchisees must spend this amount and provide evidence when requested.

6. Ongoing Royalty Fee

The greater of:

• 8% of Gross Revenue + GST, or
• the Minimum Royalty ($2,200 + GST per month)

This fee is paid monthly from the Commencement Date and covers access to the brand, support, systems, training, and ongoing franchisor services.

7. Minimum Royalty Guarantee

$2,200 + GST per month (indexed by 3% each year on 1 July)
Even if sales are low, the franchisee must at least pay the Minimum Royalty amount each month.

8. Marketing Fund Fee (Not currently in use)

Up to 3% of Gross Revenue + GST per month
This fee is not currently charged, but Success Tutoring can activate a national marketing fund in the future. If that happens, the required Local Marketing Spend would become optional.

9. Local Marketing Spend

2% of Gross Revenue per month
Franchisees must spend this amount locally on promoting their centre and provide evidence on request.

10. Retention Amount

$3,000 + any Success Tutoring expenses
This is held to cover costs such as uniforms, stationery, or equipment purchased by the franchisor on behalf of the franchisee.

11. Relocation Fee

$5,000 + GST
If a franchisee requests to move their location to a different site, this fee applies.

12. Renewal Fee

$5,000 + GST
If the franchisee renews their agreement for a further term, this fee is payable.

13. Transfer Fee

$5,000 + GST
If the business is sold or transferred to a new owner, the franchisor charges a transfer fee to manage the process.

14. Transfer Retention Amount

$10,000 held for 45 days after settlement
When a franchise is sold, Success Tutoring retains $10,000 temporarily to cover any outstanding costs, obligations or adjustments during the settlement period.

Franchisee Obligations

Just like Success Tutoring has obligations to its franchisees, franchise owners also agree to follow certain standards and responsibilities. These obligations exist to protect the brand, ensure consistency across all locations, and support the success of the business.

Below is a practical summary of the key commitments franchisees must follow, written in simple terms.

1. General Conduct & Business Standards

Franchisees are expected to:

• Run the business professionally, using good judgment, care, honesty and courtesy.
• Follow the franchise system, the Operations Manual and the Franchise Agreement at all times.
• Actively work to grow the business, attract customers and increase sales.
• Communicate promptly and honestly with Success Tutoring and other franchisees.
• Avoid doing (or failing to do) anything that could damage the brand or reputation.

2. Only Use Approved Services, Products & Equipment

To maintain consistency across all centres:

• Franchisees may only sell or provide Approved Products and Services to customers.
• Online sales or services (e.g. via websites or social media) are allowed only if done in line with the Operations Manual.
• All equipment, products and services used in the business must come from Approved Suppliers.
• Any Core Products, Core Services or Core Equipment must be sourced from Core Suppliers specifically chosen by Success Tutoring.

3. Marketing Responsibilities

Franchisees are responsible for promoting their centre within their territory. This includes:

• Running local advertising and marketing as outlined in the Operations Manual.
• Taking part in any required promotional activities (e.g. digital ads, regional campaigns, TV/radio if requested).
• Using only marketing materials that are supplied, approved or created by Success Tutoring.
• Getting written approval before using any self-made marketing materials that use the Success Tutoring brand or trademarks.
• Maintaining ethical marketing standards and complying with all relevant laws.

Franchisees must also:

• Spend at least the required Local Marketing Spend and provide evidence of this when asked.
• Promote the centre online (e.g. social media) only as allowed under the Operations Manual.
• Understand that marketing in the territory is not exclusive—Success Tutoring and other franchisees may also advertise there.

4. Opening Promotions

Before opening, franchisees must:

• Run pre-launch marketing campaigns as set out in the Operations Manual.
• Spend at least the Opening Promotion Spend and show proof when requested.
• Wait for written approval from Success Tutoring before starting the campaign.

5. Centre Appearance (Image)

Franchisees must keep their premises clean, safe, branded correctly and visually consistent with the Success Tutoring image.

6. IT Systems & Technology

Before opening and throughout the term, franchisees must:

• Install all required software, internet and IT systems as listed in the Operations Manual.
• Buy or lease IT items from the required Core Supplier or an Approved Supplier.
• Maintain and update all IT systems during the term.

7. Following Directions from Head Office

Franchisees are required to follow written directions from Success Tutoring regarding:

• Operations Manual requirements
• Use of trademarks, branding and intellectual property
• Business standards and procedures
• Marketing and sales activities
• Staff recruitment, training and management
• Premises presentation
• Financial procedures and trading practices

8. Official Documentation & Stationery

Only approved stationery, forms and documents can be used (as outlined in the Operations Manual), and these must come from Approved Suppliers unless written permission is given otherwise.

9. Business Hours

The business must operate during the required hours set in the Operations Manual, subject to the lease terms.

10. Centre Management & Supervision

The centre must always be supervised by the Centre Manager (as defined in the Operations Manual) during required operating hours.

11. Customer Service Standards

Franchisees must:

• Provide services promptly, professionally and courteously.
• Uphold high standards of ethics, integrity and fair dealing.
• Avoid any conduct that could damage the reputation of the brand, system or network.

12. Health & Safety

Franchisees must comply with all legal OH&S requirements plus any additional standards and procedures set out by Success Tutoring.

13. Customer Surveys & Feedback

Franchisees must participate in any digital surveys organised by Success Tutoring and follow any survey-related procedures.

14. Handling Complaints

Any customer complaints must:

• Be managed according to the Operations Manual.
• Be reported to Success Tutoring immediately.
• Be resolved according to the franchisor’s directions.

15. Inspections

Franchisees must allow Success Tutoring (or its representatives) to inspect the premises, equipment, services and records during normal hours without notice, or outside these hours with reasonable notice.

16. No Other Business on Site

Franchisees and guarantors cannot run any other business from the premises without the franchisor’s written consent.

17. Legal Compliance

Franchisees must:

• Comply with all laws and regulations.
• Maintain all required licences, permits, accreditations and registrations.
• Pay all taxes and levies.
• Notify Success Tutoring within 5 business days of any legal notices, claims or proceedings that could affect the business or the brand.

Franchisor Obligations

When someone signs a Success Tutoring franchise agreement, they aren’t left to figure things out on their own. As long as the franchisee continues to follow the terms of the agreement, the franchisor (Success Tutoring) has a number of obligations to support them throughout the life of the franchise.

Here’s what that actually means in practice.

1. Access to Approved Programs, Services and Updates

Success Tutoring will provide franchisees with information about all the programs, products and services that are officially approved for use in the business. This includes things like curriculum materials, systems, tools and any updates that the company decides are necessary over time.

2. Help With Legal and Compliance Requirements

If there are any legal obligations that Success Tutoring or its related companies must meet, the franchisor will supply whatever is needed to ensure compliance. This gives franchisees peace of mind that they’re operating in line with legislation and industry standards.

3. Marketing Advice and Launch Support

Franchisees aren’t expected to do their own marketing from scratch. Success Tutoring provides guidance around promoting the business, especially when launching in a new territory. This may include branding direction, marketing campaigns or advice tailored to the local area.

4. Ongoing Business Guidance

Running a tutoring centre involves many moving parts, and Success Tutoring will offer operational support where it sees the need. This could cover things like processes, best practices, customer experience, staffing guidance and general business operations.

5. Access to the Operations Manual

Franchisees receive access to the official Operations Manual — the core handbook for running the business day-to-day. Success Tutoring may also provide additional resources or updates that it considers necessary to maintain standards.

6. Marketing Fund Management

If Success Tutoring sets up a Marketing Fund (sometimes used for group advertising or national branding), they are responsible for administering it. Franchisees may contribute to this fund, but they don’t have to manage it themselves.

7. Mystery Shopping Feedback

Where a mystery shopping program is used, to assess customer experience or operational standards, the franchisor will share the results and provide constructive feedback to the franchisee.

Summary

In short, the agreement makes it clear that Success Tutoring is responsible for providing guidance, information, tools and ongoing support — not just at the beginning, but throughout the franchise term. This backing is designed to help franchisees stay compliant, operate effectively and grow their business with the franchisor’s systems behind them.

The Success Tutoring Franchise Agreement is a comprehensive document designed to protect both the franchisor and the franchisee while ensuring the business is run consistently across all locations. It sets out the expectations, standards and support offered, and outlines the fees, operational requirements, legal obligations and performance benchmarks involved in joining the network. While the agreement may seem detailed at first glance, most of its clauses are standard within franchising and aim to create clarity, protect the brand and set franchisees up for long-term success.

Disclaimer: The information provided in this blog is for general understanding only and is not legal advice. Anyone considering a Success Tutoring franchise should obtain their own independent legal, accounting and business advice before making any decisions or entering into an agreement.