Trainee Driving Instructor Franchise Agreement

1. Definitions

In this agreement the following terms shall have the following meanings:

• "The Company" means Direct Drive Driving School, trading from Challenge House, 616 Mitcham Road, Croydon, CR0 3AA.
• "The Trainee" means the individual who has applied for and been accepted onto the ADI Training Package, as named in the application form.
• "The Instructor" means the Trainee upon successful qualification as an Approved Driving Instructor (ADI) as registered with the DVSA.
• "The Training Package" means the ADI training programme provided by the Company as set out in Schedule 1 of this agreement.
• "The Standard Training Fee" means the full, undiscounted cost of the Training Package: £1,497.
• "The Loyalty Training Fee" means the discounted cost of the Training Package available exclusively to Trainees who enter into and fulfil the minimum three-year Franchise Agreement: £597.
• "The Franchise Agreement" means the agreement by which the Instructor operates as a self-employed franchisee of the Company following qualification.
• "The Trainee Period" means the period between the Trainee commencing the Training Package and achieving full ADI registration with the DVSA.
• "The Franchise Period" means the minimum period of three (3) years commencing on the date the Instructor is added to the DVSA ADI register.
• "PDI" means Potential Driving Instructor, holding a DVSA-issued Trainee Licence (pink badge).
• "ADI" means Approved Driving Instructor, fully registered on the DVSA ADI register (green badge).

2. Training Package Fee — Two Price Options

The Training Package is offered at two price points depending on whether the Trainee enters into and fulfils the minimum three-year Franchise Agreement with the Company:

2.1 Choosing the Loyalty Rate (£597)

By paying the Loyalty Training Fee of £597, the Trainee agrees to join and remain with Direct Drive Driving School as a franchisee for a minimum of three (3) years following full ADI qualification. This is not a penalty clause — £597 is simply the price of the Training Package when taken in conjunction with the three-year Franchise Agreement. The Company is able to offer this reduced rate because of the ongoing commercial relationship.

2.2 Choosing the Standard Rate (£1,497)

The Trainee may alternatively pay the Standard Training Fee of £1,497 and has no obligation to join the Direct Drive franchise upon qualification. The Trainee is free to work independently or with any other driving school.

2.3 Switching from Loyalty Rate to Standard Rate

If a Trainee who has paid the Loyalty Training Fee of £597 subsequently chooses not to enter into the Franchise Agreement, or enters into the Franchise Agreement but leaves before completing the minimum three-year Franchise Period, for any reason whatsoever, including but not limited to a change of address, relocation, emigration, ill health, retirement, financial circumstances, career change, personal circumstances, or any other voluntary or involuntary reason, the Trainee shall become liable to pay the full standard training fee, less any amounts already paid, within 30 days of written demand the outstanding balance of £900 (being the difference between the Standard Rate of £1,497 and the Loyalty Rate of £597 already paid) shall become immediately due and payable to the Company. This sum represents the balance of the Standard Training Fee and is not a penalty.

The outstanding balance of £900 is payable within 28 days of the date on which the Trainee or Instructor notifies the Company of their intention not to join or to leave the franchise. The Company reserves the right to recover unpaid balances through civil proceedings.

2.4 Transparency

The Company wishes to be clear: the Trainee is never obligated to join the Direct Drive franchise. The choice is entirely theirs. The two pricing options simply reflect the commercial arrangement — those who commit to three years with the Company receive a substantially reduced training cost. Those who do not make that commitment pay the full market rate.

3. The Training Package — What's Included

3.1 Contents

Regardless of which fee option is chosen, the Training Package contains the same elements:

• One-to-one Part 2 (Driving Ability) training sessions with a qualified ADI trainer
• Access to the Theory Test App for Part 1 preparation
• Official Instructor Theory Test App access
• Full resource pack (6 books) covering driving standards, teaching methods, and ADI requirements
• Step-by-step guidance throughout the qualification process
• Tutor helpline and email support throughout training

Full details are set out in Schedule 1.

3.2 What is Not Included

The following costs are the sole responsibility of the Trainee and payable directly to the DVSA:

• DBS Check: approximately £32 (£6 online + £26 enhanced)
• Part 1 Theory Test fee: £81
• Part 2 Driving Ability Test fee: £111
• Part 3 Instructional Ability Test fee: £111
• Trainee Licence (PDI Pink Badge) fee: £140 (if applicable)

3.3 Re-sits

The Training Package covers preparation for each DVSA test. It does not cover re-sit fees, which are the sole responsibility of the Trainee. The Company will provide reasonable additional support to assist with re-sit preparation but is under no obligation to provide additional paid training hours at no charge.

4. The Trainee Period

4.1 Duration

The Trainee Period begins on the date the Trainee's application is accepted by the Company and continues until the earlier of:

• (a) the date the Trainee is added to the DVSA ADI register as a fully qualified instructor; or
• (b) the date the agreement is terminated.

4.2 Trainee Licence (PDI Pink Badge)

Once the Trainee has passed Part 2, they may apply to the DVSA for a Trainee Licence. During the PDI period the Trainee may conduct supervised paid lessons under the Company's banner, subject to DVSA regulations. The Company will provide pupil supply and diary management during this period.

4.3 The Company's Obligations During Training

The Company will:

• Provide all elements of the Training Package as described in Schedule 1
• Assign a qualified ADI trainer to the Trainee
• Provide reasonable access to the trainer via telephone or email
• Provide pupil supply once the Trainee holds a valid PDI Trainee Licence
• Provide diary management and call centre support during the PDI period

4.4 The Trainee's Obligations During Training

The Trainee will:

• Engage with the training programme diligently and in good faith
• Complete all required elements of the Training Package
• Pay the chosen Training Package fee in accordance with the agreed payment schedule
• Make all DVSA payments directly and in a timely manner
• Notify the Company promptly of any DVSA test results (pass or fail)
• Complete the full ADI qualification within 24 months of the start date, in line with DVSA requirements
• Conduct themselves professionally at all times when representing the Company during the PDI period

4.5 DVSA Delays and Third-Party Processes

The Trainee acknowledges and agrees that:

• (a) The DVSA is an independent government body over which the Company has no control or influence. The Company accepts no responsibility whatsoever for any delays caused by the DVSA in processing applications, issuing test dates, processing DBS checks, issuing the ADI register entry, or any other administrative or operational function of the DVSA or any other third-party body.
• (b) Test waiting times, DBS processing times, and ADI register processing times can vary significantly and are outside the Company's control. The Company makes no guarantee as to when any DVSA test date will become available or when any result or registration will be processed.
• (c) It is the sole responsibility of the Trainee to monitor their progress through the qualification process and to book each DVSA test — including the Part 3 Instructional Ability Test — with sufficient time to complete the full ADI qualification within the 24-month period permitted by the DVSA. Failure to book tests in good time, or failure to pass within the permitted timeframe, does not extend the 24-month qualification window and does not entitle the Trainee to a refund of training fees.
• (d) The Company recommends that Trainees book their Part 3 test as early as practicable once they have completed sufficient training, in order to allow time for re-sits if required within the qualification window. The Trainee is solely responsible for managing this timeline.
• (e) Any additional costs incurred as a result of DVSA delays — including but not limited to extended franchise fees during a PDI period, re-sit fees, or costs associated with a Trainee Licence expiring before Part 3 is passed — are the sole responsibility of the Trainee. The Company shall not be liable for any such costs.

5. The Franchise Agreement (Loyalty Rate Trainees)

5.1 Commencement

The Franchise Agreement commences on the date the Instructor is added to the DVSA ADI register. The Instructor agrees to operate as a franchisee of Direct Drive Driving School for a minimum period of three (3) years from this date.

5.2 Franchise Fee — PDI Trainee Licence Period

From the date the Trainee holds a valid PDI Trainee Licence and begins conducting paid lessons under the Company's banner, the weekly franchise fee shall be:

5.3 Franchise Fee — Qualified ADI

Upon full qualification and registration on the DVSA ADI register, the weekly franchise fee shall reduce to:

5.4 Franchise Fee Payment

Franchise fees are payable weekly in advance. The Company reserves the right to suspend pupil supply and diary management services if any franchise fee is more than 7 days in arrears.

5.5 What the Company Provides Under the Franchise Agreement

During the Franchise Period the Company will provide:

• A guaranteed minimum of 30 teaching hours per week in the Instructor's diary. If the Company is unable to provide 30 hours in any given week, the franchise fee for that week shall be waived in full.
• 2 weeks franchise-free at the start of the Franchise Period
• Diary management and scheduling via the Company's call centre
• Online booking system with app access
• Headboard and decals for the Instructor's vehicle
• Business cards and stationery
• 4 weeks paid holiday per year (franchise fee waived, subject to a minimum of 2 weeks written notice)
• Continuous business support and pupil supply management

5.6 The Instructor's Obligations Under the Franchise Agreement

The Instructor will:

• Operate exclusively under the Direct Drive Driving School brand for the duration of the Franchise Period
• Maintain a valid ADI registration with the DVSA at all times
• Maintain adequate motor insurance for driving instruction, including public liability cover
• Ensure their vehicle meets DVSA requirements at all times
• Conduct lessons to a professional standard consistent with DVSA guidelines
• Not accept private pupils outside the Company's booking system without prior written consent
• Give a minimum of 30 days written notice of intention to leave the franchise

5.7 Vehicle

The Instructor may use their own DVSA-approved vehicle under 8 years old or hire a vehicle from the Company. Vehicle hire is subject to separate charges and a separate hire agreement. The Company accepts no responsibility for the Instructor's vehicle maintenance, insurance, or running costs.

6. Self-Employment Status

The Instructor is at all times a self-employed independent contractor. Nothing in this agreement shall be construed as creating a relationship of employer and employee, partnership, joint venture, or agency between the Instructor and the Company.

The Instructor is solely responsible for registering as self-employed with HMRC, completing their annual Self Assessment tax return, and paying all Income Tax and National Insurance contributions due. The Company accepts no liability for the Instructor's tax obligations.

7. Leaving the Franchise

7.1 Leaving After Completing the Three-Year Minimum Franchise Period

Following the expiry of the minimum Franchise Period, the agreement continues on a rolling monthly basis. Either party may terminate by giving 30 days written notice. No balance of training fee is payable. The Instructor leaves with no financial obligation to the Company beyond any outstanding franchise fees.

7.2 Leaving Before Completing the Three-Year Minimum Franchise Period

If the Instructor wishes to leave the franchise before the expiry of the three-year minimum Franchise Period, they must give 30 days written notice to the Company. The outstanding training fee balance of £900 (Standard Rate of £1,497 less the Loyalty Rate of £597 already paid) becomes due and payable within 28 days of the termination date.

This is not a penalty. It is simply the unpaid balance of the standard market-rate training fee, which was discounted on the basis of a three-year commitment that has not been fulfilled.

7.3 Declining to Join the Franchise After Qualifying

If a Trainee who has paid the Loyalty Training Fee of £597 qualifies as an ADI but declines to enter into the Franchise Agreement, the outstanding balance of £900 becomes immediately due and payable.

7.4 Termination by the Company

The Company reserves the right to terminate this agreement with immediate effect if the Instructor:

• Loses their ADI registration with the DVSA for any reason
• Is convicted of a criminal offence that renders them unsuitable to work with members of the public
• Repeatedly and materially breaches the terms of this agreement after written notice to remedy such breach has been given and not acted upon
• Acts in a manner likely to bring the Company into disrepute

Where the Company terminates under this clause, no outstanding training fee balance shall be payable by the Instructor.

7.5 Outstanding Franchise Fees on Termination

Any outstanding franchise fees at the date of termination remain payable regardless of the reason for termination.

8. Confidentiality

The Instructor agrees not to disclose to any third party any confidential information belonging to the Company, including but not limited to pupil details, business processes, pricing structures, or supplier arrangements, during or after the term of this agreement.

9. Dispute Resolution

In the event of any dispute, both parties agree to attempt to resolve the matter informally in the first instance by written communication.

If the dispute cannot be resolved informally within 28 days, either party may refer the matter to an agreed mediator before resorting to legal proceedings.

This agreement is governed by the laws of England and Wales. Any legal proceedings shall be subject to the exclusive jurisdiction of the courts of England and Wales.

10. Entire Agreement

This agreement, together with the application form and Schedule 1, constitutes the entire agreement between the parties and supersedes all prior discussions and representations. No variation shall be effective unless made in writing and signed by both parties.

11. Severability

If any provision of this agreement is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.

Schedule 1 — Training Package Contents

DVSA test fees are not included and are payable directly to the DVSA by the Trainee.

Schedule 2 — Fee Summary