Question: When can a Franchisor terminate a Franchise Agreement?
A Franchisor can seek to terminate a franchise agreement if it is breached, i.e. if the franchisee fails to do something required of them, or if they do something that they are restricted from doing. There are however, strict rules that must be followed by the Franchisor before a franchise agreement can be terminated (excluding the few exceptions where a franchise agreement can be terminated immediately – refer to clause 29 of the Franchising Code). These rules require a Franchisor to provide a Franchisee with:
1. notice that they intend to terminate the franchise agreement;
2. information on how the Franchisee can remedy the breach; and
3. how long the Franchisee has to remedy the breach (this must be reasonable but need not be more than 30 days).
Answered by Masao Watanabe
Masao is a franchise lawyer. After completing a Bachelor of Commerce at the University of New South Wales in 2009, Masao pursued a degree in law, graduating in 2014 with a Juris Doctor from the University of Sydney. Previously Masao has worked in several franchises as well as in finance.
Get in Touch
Fill out the form below and a LegalVision team member will be in touch shortly!
Top 20 Startups in Australia - 2018 LinkedIn Startups List
NewLaw Firm of the Year Finalist – 2018 Australian Law Awards
Law Firm of the Year Finalist – 2018 Australasian Law Awards
AFR Fast 100 List – 2018 Australian Financial Review
NewLaw Firm of the Year – 2017 Australian Law Awards
Customer Service Experience of the Year – 2017 Optus My Business Awards
We collect and store information about you. Let us explain why we do this.
What information do you collect?
We collect a range of data about you, including your contact details, legal issues and data on how you use our website.
How do you collect information?
We collect information over the phone, by email and through our website.
What do you do with this information?
We store and use your information to deliver you better legal services. This mostly involves communicating with you, marketing to you and occasionally sharing your information with our partners.
How do I contact you?
You can always see what data you’ve stored with us.
Questions, comments or complaints? Reach out on 1300 544 755 or email us at email@example.com