If you need help sorting out a franchising dispute, we're here for you
Franchising is a business relationship in which the franchisor (the owner of the business model) grants a person (the franchisee) the right to sell or distribute the franchisor's goods or services and to use the business name for a fixed period.
Franchises represent a significant portion of the Australian economy, and the industry is steadily growing.
Research into franchising in Australia conducted in 2016 by Griffith University’s FranchiseED (previously the Asia-Pacific Centre for Franchising Excellence) found there were:
- Approximately 1,120 franchisors in Australia
- An estimated 79,000 franchise units (for instance, stores and cafes) operating in Australia
- More than 472,000 people employed directly in franchising
- An estimated sales turnover of $146 billion in the franchising sector.
Franchise disputes can arise for a range of reasons. They can usually be settled in a timely and cost-effective manner without going to court.
What is a franchise agreement?
A franchise agreement defines the rights and obligations of the franchisor and franchisee. The franchisor usually charges the franchisee an upfront fee as well as an ongoing fee for the right to sell or distribute the franchisor’s goods or services and use its business name.
The Franchising Code of Conduct, which all franchisors must abide by, requires franchisors to provide a disclosure document that lays out, among other things, the information necessary for potential franchisees to decide whether or not to buy a franchised business before signing a franchise agreement.
Resolving franchise disputes
Franchise disputes occasionally occur in franchise relationships. For a franchisee, you may have a dispute if:
- You have issues with a franchisor's conduct or practices
- You have been misled about a franchise's profitability
If you're in any kind of franchise dispute, it's essential to seek legal advice as early as possible. Franchise disputes don't have to be very costly, but without expert guidance, they can get out of control.
We can assist you to:
- Recover any losses arising from a franchisor's failure to comply with their obligations under your franchise agreement
- Advise on whether you or your franchisor have the right to terminate your franchise agreement
- Negotiate a speedy resolution to any dispute arising from a franchise agreement
- Recover any losses resulting from a franchisor engaging in misleading or deceptive conduct, such as failing to disclose a business's true financial position
- Represent you in a mediation with the Office of the Franchising Mediation Adviser (OFMA).
Meet the team
Our expert legal team have years of experience in helping franchisees understand their rights and obligations. Talk to us today if you need help diffusing a dispute.