Franchising Disputes | Greyson Legal
A successful business relationship between a Franchisor and its Franchisees depends on various factors. One important element is communication. When communication channels break down, franchise disputes can arise. If left unchecked and unresolved, franchise disputes can have a negative impact on not only the parties directly in dispute, but also the broader franchise network and franchise brand.
Greyson Legal are experienced franchise dispute lawyers. We can help with:
- negotiating a dispute resolution;
- litigation; and
- guidance on other strategies.
Negotiation as a Dispute Resolution Strategy
In our experience, more often than not, the parties to dispute are able to reach a solution through negotiation. But when you are in the heat of the argument emotions can be overwhelming at times and you need the help of a third party to provide advice, guidance and a channel of communication.
As franchise solicitors, Greyson Legal have the skills, knowledge and experience to assist you in seeking to resolve your franchise dispute through negotiation, such as:
- aiding with appropriate variations to an existing Franchise Agreement; or
- mutually surrendering or terminating an existing Franchise Agreement - allowing each party to go their separate ways without the need for further mediation or litigation; or
- some other negotiated outcome specific to your situation.
Franchising Code Conduct and Mediation
If negotiation is unsuccessful in the first instance, the Franchising Code of Conduct ("Code") sets out a process for seeking resolution of a dispute between a Franchisor and Franchisee, through mediation.
Under the Code, an application can be made to the Office of the Franchising Mediation Adviser (OFMA) for the appointment of a specialist mediator to assist the parties to reach a resolution.
Where mediation is necessary, Greyson Legal can assist you with applicable advice and guidance through the process.
Most Franchise Agreements typically alsoincludes a dispute resolution process. Often though, this process mirrors that which is set out under the Franchising Code of Conduct.
Unfortunately, irrespective of efforts to resolve a franchise dispute by way of negotiation and/or mediation (or in more urgent situations), court proceedings may be warranted.
Legal proceedings, whether you are the party filing a civil action as plaintiff or defending a claim -can be stressful, lengthy and costly. Appropriate legal advice should be obtained, including as to the litigious processes and prospects of success.
Need Experienced Franchise Dispute Lawyers ?
Greyson Legal are experienced franchise dispute solicitors. We:
- can assist you in your negotiations with the Franchisor;
- are familiar with the dispute resolution procedure under the Code and mediation procedures;
- are able to assist you should the franchise dispute become litigious; and
- can provide advice on other strategies which may be available to your specific situation.
Contact Greyson Legal, franchise lawyers for a confidentialno obligation discussion on what we can do for you.
Examples of Past Franchise Disputes we have been involved in
Some of the franchising dispute matters the Principal has been involved with include:
- after initial negotiations and mediation failed - assisting a Franchisee within a fitness industry franchise system on the Sunshine Coast to exit that system, ultimately enabling the Franchisee to trade on its own account and later sell the business as a going concern
- helping a Franchisee in a take away food franchise system based in Chermside to obtain a surrender of the Franchise Agreement and negotiate a Franchisor buy-back of the franchised business
- aiding a Franchisee within a large and well-known real estate franchise system in the Cleveland area to obtain a surrender of the Franchise Agreement and enabling the Franchisee to continue trading on its own account under a new business name and brand
- after lengthy negotiations, which ultimately fell-over, providing guidance to a Franchisee based in Brisbane City within a fast food franchise system as to strategies to enable them to continue trading outside the franchise system
- assisting a Franchisee within the tiling industry on the Sunshine Coast with their negotiations with the Franchisor, including achieving a mutually agreed surrender of the Franchise Agreement and removal of restraint of trade restrictions
- advising a Franchisee within the recreational equipment hire industry in Redcliffe regarding their rights and obligations, including providing guidance on mediation processes.