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Franchise Disputes

Expert Franchise Dispute Lawyers at QBM Lawyers

Our franchise dispute lawyers are here to guide you through any conflict, whether you’re a franchisor or a franchisee. At QBM Lawyers, we specialize in resolving franchise disputes through negotiation, mediation, or litigation. 

Franchise Disputes,, Franchise dispute lawyers, QBM Lawyers

Resolving Franchisor-Initiated Disputes

When franchisors have a problem, they usually start by sending a notice to fix the issue. This notice explains what the problem is, what needs to be done to fix it, and how long you have to do it. Franchise agreements can be complicated with many extra documents and services involved. It’s really important to carefully check these documents to see if the breach notice is valid.

Common franchisor complaints include;

  • Non-payment of marketing fees, royalties, or other dues.
  • Breaches of outlet license agreements.
  • Underreporting of revenue.
  • Competing business activities.
  • Failure to adhere to franchise standards.
  • Underpayment of staff, which could implicate the franchisor.

If the franchisee fails to remedy a breach, the franchisor may terminate the franchise agreement, potentially leading to significant losses and damage claims.

Handling Franchisee-Initiated Disputes

Franchisees can raise disputes under the Franchising Code of Conduct by sending a dispute notice. After that, both sides have three weeks to fix the problem. If they can’t agree, they can ask for mediation. Mediation is where an expert helps them find a solution that works for both parties.

Common franchisee complaints include:

  • Inadequate or misused marketing contributions.
  • Delays in adapting to market conditions.
  • Supply chain issues or product complaints.
  • Insufficient training and support.
  • Misrepresentations by the franchisor or their agents.
  • Costs related to renovations and exiting the franchise.

Both franchisors and franchisees are obligated to act in good faith, a principle often invoked in disputes.

Litigation: When It's Necessary

While mediation is a cost-effective approach, sometimes litigation is unavoidable. Legal action is typically a last resort, as it can strain working relationships. However, in cases of significant business harm, urgent legal measures like injunctions may be necessary.

Contact Our Skilled Franchise Dispute Lawyers

At QBM Lawyers, our franchise dispute lawyers are well-versed in the Franchising Code of Conduct and the nuances of franchise law. We ensure compliance with all disclosure and reporting requirements. It is done by helping you navigate the complexities of franchise disputes effectively.

For expert assistance with franchise disputes, contact:

Megan Hanneman at meganh@qbmlaw.com.au

Peter Muller at peterm@qbmlaw.com.au 

Justin Mathews at justinm@qbmlaw.com.au

Let QBM Lawyers help you resolve your franchise disputes efficiently and effectively.

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