Receive the latest mybusiness news
Copyright © 2020 MOMENTUMMEDIA

Top tips for solving franchise disputes

31 May 2019 1 minute readShare
Shopping street

When two parties in a franchise agreement are in dispute, there are a range of strategies businesses can use to get out of hot water.

As a starting point, open and calm communication is highly recommended, and often all that is necessary to reach a point of negotiation.

However, when a dispute cannot be resolved, the Australian Competition and Consumer Commission has a clear process that should be followed to ensure both the franchisee and franchisor negotiate a fair outcome.


The ACCC recommends the disputer follows the below:

Step 1


The first step is to notify the other party in writing of the dispute. Be sure to set out the following:

- The nature of the dispute

- What outcome you want

- What action will settle the dispute



Step 2

If the dispute cannot be resolved in three weeks, the second step is to refer the matter to a mediator.

If both parties cannot agree on a mediator, the ASBFEO can arrange for the Franchising Mediation Advisor to appoint one for the case.

- Plan for mediation

Prior to attending the mediation, make sure to have a detailed plan for how to express concerns including:

- Areas of disagreement and misunderstanding

- Your priorities

- Proposed outcomes

It is compulsory for both parties to attend, with both parties obliged to act in good faith.

This email address is being protected from spambots. You need JavaScript enabled to view it.

Top tips for solving franchise disputes
mybusiness logo

Leave a Comment

Latest poll

Which of the following stimulus measures has had the greatest impact on your business?