Franchise Disputes
Franchising is a business arrangement in which one party called the franchisor, licenses its know-how, procedures, intellectual property, business model, and the right to sell its branded products and services to another party called the franchisee. Franchising in Australia is regulated by the Franchising Code of Conduct (the “Code”) and the Australian Consumer Law.
Franchising offers many benefits to both the franchisor and the franchisee. The franchisor gets to expand the reach of its products and services without incurring the costs of setting up in each new location, while the franchisee benefits from the management support provided by the franchisor and the goodwill which the franchisor’s products and services already enjoy.
Whether you are a franchisor or a franchisee, it is important to seek expert legal advice as soon as a franchise dispute arises. Our franchise dispute resolution lawyers can help you create and execute a strategy for dealing with the dispute, to ensure the best outcomes for your business.
Despite the synergies which the franchise parties enjoy, sometimes disputes may arise between the parties. Common causes of franchise disputes include:
➝ Increasing franchise fees
➝ Decreased levels of support from the franchisor
➝ Breach of confidentiality obligations
➝ Franchisee fails to adhere to the franchise system
➝ Franchisor misrepresents the prospects of the franchise
➝ Franchisor breaches franchisee's exclusive territory rights
Our Services
Parties to a franchise dispute are required by law to attempt to settle their dispute amicably before resorting to legal action.
▶︎ Negotiation – this is the first stage is usually a discussion between the franchisor and the franchisee. The discussion can be had through letters or email, or in-person meetings between the representatives of each party.
▶︎ Mediation – if the dispute is not resolved the first stage, the parties are required to appoint a mediator to facilitate their discussions.
▶︎ Legal action – the parties may resort to legal action only if the dispute is not resolved at the first two stages.
We help guide both franchisors and franchisees through every stage of the dispute resolution process. Contact us for an initial free consultation on your franchise dispute. Our services include:
➝ Reviewing the franchise agreement and advising you of your rights and the available remedies under the contract
➝ Providing recommendations on the best strategy for resolving the dispute
➝ Preparing and issuing or responding to any notices required to commence dispute resolution proceedings
➝ Where the dispute is to be resolved through litigation, preparing any documents to be filed at the court
➝ Prosecuting interlocutory applications as needed
➝ Legal representation in court hearings
➝ Enforcement of judgment
➝ Appeals
Call our NATIONAL LEGAL HOTLINE
1300 2 LEGAL
Open 7am to Midnight, 7 days a week
Our Approach
In every matter that we take on, our first step is to understand your business and the facts of your case, to enable us tailor our advice to your specific situation. We will then advise you on your options, recommend the most commercially viable strategy for your case, and inform you of the next steps. We take action swiftly, keep you updated at every stage of the process.
We adopt a multi-disciplinary approach to providing our services, by drawing on expertise from our various practice groups, as needed.
We are meticulous and have put in place the necessary internal processes to ensure that our services are of the highest standards.
Why choose us?
We have over 40 years experience in helping clients resolve all kinds of business disputes, arising from various kinds of contracts, including franchise agreements. We are experts in all aspects of the dispute resolution process, from issuing notices and negotiating out-of-court settlements, to litigation, enforcement of judgment and appeal.
We are practical and efficient. Our services are competitively priced, and we offer an initial free consultation to discuss the merits of your case and help you better understand your position. Depending on your preference, we offer fixed fee and hourly billing options.