23. How can parties resolve disputes about franchising agreements?

The Franchising Code provides a choice of procedures for resolving disputes about franchising agreements, which either party may use. The procedures allow for complaints to be handled internally or under the code.

Internal complaint-handling procedure
Franchising agreements must set out an internal complaint handling procedure that complies with the code.

Code complaint-handling procedure
The following steps apply in relation to this procedure:

• The complainant must inform the other party in writing of the dispute.
• The parties should try to agree on a way to resolve the dispute.
• If the parties cannot agree within three weeks, either party may refer the dispute to a mediator.
• If the parties cannot agree on a mediator, either party may ask the Office of the Franchising Mediation Adviser to appoint one.
• Once a mediator is appointed, the mediator may decide the time and place for the mediation, although it must be conducted somewhere in Australia.
• Once a matter has been set down for mediation, both parties must attend the mediation and try to resolve the dispute.