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franchise dispute resolution is important for parties

Franchise Dispute Resolution

Regardless of whether you are a franchisor or franchisee in dispute, you must follow the franchise dispute resolution procedure outlined under the Franchising Code of Conduct. The Franchising Code of Conduct mandates that franchisors develop an internal procedure for dispute handling which they set out in the franchise agreement. The internal procedure must meet the minimum standards imposed by the Franchising Code of Conduct. These minimum standards are that you, first, write to the other party stating:

  • What the dispute is about;
  • What outcome you want; and
  • What action you require the party to do to settle the dispute.

If there is no outcome within three weeks, the parties may conduct a mediation session with an external and independent third party. Alternatively, they may take the other party to court.

What Franchise Dispute Resolution Procedure is Best For Me?

Whether you try and negotiate, attend mediation, or go through court will depend on your circumstances. We recommend, however, that you try and resolve your dispute in that order. Not only is this the cheapest way to resolve your dispute, but it can also be the most effective too.

In some instances, mediation or negotiation may not be the most appropriate solution. For instance, if you require urgent relief, such as stopping the party from doing certain actions, seeking an injunction in court may be more appropriate for your circumstances.

How Can LegalVision Help With Your Franchise Dispute Resolution?

LegalVision’s franchise lawyers can help in all aspects of the franchise dispute. At the negotiation stage, we can draft breach notices and review any agreements forming part of the breach. We can organise mediation on your behalf, prepare mediation submissions and represent you at the mediation. If the matter does proceed to court, our franchise lawyers can also provide you with the representation that you need to achieve your outcomes. Get in touch with us today by calling 1300 882 957 or fill out the form for quick and efficient advice.

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