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Franchisors and franchisees have a special and long term business
relationship. Their success depends not only on their own
performance but the other’s performance and the collective
performances of all other franchisees. Their relationship and the
conduct of the business are governed by The Franchise Agreement, The
Franchise Code, The Trade Practices Act and the lease. If the
parties to the franchise have a dispute the Franchising Code (which
is mandatory) makes provision for the dispute to be referred to
mediation. Every Franchise Agreement must comply with the
Franchising Code and must contain a dispute resolution clause.
(See our link to the OMA’s website and the Australian Competition
and Consumer Commission’s website for information on Dispute
Resolution Clauses.)
www.accc.gov.au
http://www.mediationadviser.com.au
Franchise disputes can arise for many reasons:
- Misrepresentation
- Disputes regarding support in training or advertising
- Supply of product and restrictions on use of other products
- Lease disputes
- Non payment of monies
- Personality issues
- Communication
Franchise Disputes are perfect for Mediation because they
generally relate to long term business relationships where both
parties benefit from their mutual successes. (See Business Disputes
and Business Relationship Disputes above.) Mediation can look at the
root cause of disputes. For example, sometimes a franchisee is
operating a business for the first time and needs more support to
become a better manager and business operator. Often disputes get to
Mediation because of lack of communication. Mediation can have a
lasting benefit by facilitating improved communication and dispute
resolution systems for the future.
The Franchise dispute resolution clause requires parties to first
advise each other of a dispute by notice in writing before agreeing
how to resolve the dispute. See the attached Notice of Dispute which
the OMA recommends. If the parties can’t resolve the problem they
must mediate the dispute. Both parties must attend the mediation and
try to resolve the dispute. The cost of mediation is to be paid
equally by the parties. The parties are required to sign a Mediation
Agreement.
Michael is a Panel Mediator for the Office of the Mediation
Adviser (OMA) which has a role in appointing mediators for Franchise
Disputes. The parties can agree on the appointment of a mediator or
ask the OMA to appoint a mediator. Where to now?
Speak to a mediation expert
Often the best way to get the answers you need is to speak to an
expert. Click here to contact one of our
mediation experts via our contact forms or please call us on +61 3
9642 4552.
Organise an initial consultation
A face-to-face consultation gives you the opportunity to discuss
your mediation issue with professionals who deal with and resolve
these issues on a daily basis.
It gives you a chance to ask any questions you may have and for a
member of our team to gain background and provide you an insight
into the issues that you are facing.
For more information please call us on +61 3 9642 4552 or send us an
e-mail at
info@tiernanmedation.com.au. We are here to help you resolve
your problems.
Asset Management Melbourne
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