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Franchise Dispute Resolution
Our franchise dispute resolution lawyers in Melbourne and Mount Waverley assist franchisors and franchisees to resolve conflicts quickly and cost-effectively. We provide expert advice on breaches of franchise agreements, performance and fee disputes, termination and restraint of trade issues, misrepresentation, and compliance with the Franchising Code of Conduct. Using strategic negotiation, mediation, and litigation, we protect your commercial interests across Victoria.
Franchise Disputes & Litigation – Representing both franchisors and franchisees in legal conflicts, ranging from contract breaches and royalty fee disputes to operational disagreements and territory encroachment.
Breach Notices & Terminations – Expert assistance in issuing or responding to formal breach notices. We ensure all actions align with the strict procedural requirements of the Franchising Code of Conduct and your specific franchise agreement to prevent wrongful termination claims.
Mediation & Alternative Dispute Resolution (ADR) – Facilitating formal negotiations and mandatory mediations under the Code to achieve fair resolutions outside of court, saving our clients the time and expense of protracted litigation.
Arbitration for Complex Matters – Handling high-stakes or multi-party franchise disputes through structured arbitration, providing a private and binding alternative to the court system.
Misrepresentation & Disclosure Claims – Advising on claims involving misleading or deceptive conduct, failure to provide adequate disclosure documents, and breaches of good faith obligations.
Restraint of Trade & Non-Compete Issues – Advising on the enforceability of restraint clauses and protecting intellectual property when a franchise relationship ends or transitions.
FAQs: Common questions about the Franchising Code of Conduct, breach notices, and mediation are answered below.
Frequently Asked Questions About Franchise Dispute Resolution
What is the Franchising Code of Conduct?
The Franchising Code of Conduct is a mandatory, industry-wide code that regulates the conduct of franchisors and franchisees in Australia. It imposes a duty on both parties to act in good faith and sets out specific procedures for resolving disputes, including mandatory disclosure and mediation requirements.
What should I do if a dispute arises with my franchisor or franchisee?
The Code requires the party with the complaint to first send a formal "notice of dispute" in writing. This notice must outline the nature of the dispute, the outcome sought, and the action required to settle the matter. Both parties are then required to attempt to resolve the dispute in good faith before taking further legal action.
Is mediation required for franchise disputes?
Yes, in most cases. If the parties cannot reach an agreement within 21 days of the notice of dispute being sent, either party may refer the matter to an alternative dispute resolution process, such as mediation. Courts often require parties to have attempted this process before they will hear a formal claim.
Can a franchisor make a franchisee pay for their legal costs?
Under the Franchising Code of Conduct, franchisors are generally prohibited from passing on their legal costs of settling a dispute to the franchisee. This ensures that the cost of seeking legal advice or attending mediation does not unfairly burden the franchisee.
Should I seek legal advice before responding to a breach notice?
Yes. Breach notices have strict legal requirements and potential consequences, including the termination of the franchise agreement. Obtaining legal advice early can help you understand your rights, ensure your response is compliant, and prevent the dispute from escalating into expensive litigation.
Is my conversation with a franchise lawyer confidential?
Yes, information you disclose for the purpose of seeking legal advice is covered by legal professional privilege. This applies to initial enquiries, phone calls, and consultations. Keeping these discussions confidential allows you to explore your options and the strengths of your position without prejudice to your commercial interests.
What is the difference between a solicitor and a barrister in a franchise case?
Your solicitor manages the ongoing strategy of your matter, prepares the notice of dispute, and handles negotiations. If the franchise dispute involves a complex trial or a significant hearing, we may engage a barrister. The barrister acts as a specialist advocate with expertise in presenting complex arguments in a courtroom setting.