Franchise disputes can arise for many reasons, including disagreements about franchise fees, operational standards, marketing obligations, or termination of the franchise agreement. Misunderstandings about the rights and responsibilities of each party can also lead to conflict.
Safeguarding your franchise.
Franchising can provide valuable business opportunities, but disputes can arise when expectations between franchisors and franchisees differ.
These disagreements may affect the operation of the franchise, contractual obligations, or the long-term viability of the business. Addressing disputes early can help prevent further disruption and protect both commercial relationships and financial interests.
What is a franchise dispute?
Franchise disputes commonly arise between franchisors and franchisees in relation to franchise agreements, operational requirements, or financial obligations. Issues may involve alleged breaches of the franchise agreement, disputes over fees or royalties, termination of the franchise, or disagreements about the operation of the business.
Franchising in Australia is regulated by the Franchising Code of Conduct, which sets out certain rights and obligations for both franchisors and franchisees. Resolving disputes often involves interpreting franchise agreements alongside these regulatory requirements.
We’re here to help
Moore Lawyers provides practical legal advice to both franchisors and franchisees involved in franchise disputes. We assist clients in understanding their rights and obligations under franchise agreements and relevant laws.
Our team works to resolve disputes through negotiation or mediation wherever possible. If a matter cannot be resolved informally, we can assist with enforcing contractual rights or defending claims through appropriate legal channels.
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Frequently asked
questions
What causes franchise disputes?
What is the Franchising Code of Conduct?
The Franchising Code of Conduct is a mandatory industry code that regulates franchising arrangements in Australia. It sets out rules regarding disclosure requirements, dispute resolution processes, and certain obligations for franchisors and franchisees.
Do franchise disputes have to go to court?
Not always. The Franchising Code of Conduct encourages parties to attempt to resolve disputes through mediation before pursuing legal action. Many franchise disputes are resolved through negotiation or mediation without the need for formal litigation.
What should I do if a franchise agreement is being breached?
If you believe a franchise agreement has been breached, it is important to seek legal advice promptly. Early advice can help clarify your rights and identify the most appropriate steps to resolve the issue before it escalates further.