Franchise Disputes

Expert Franchise Dispute Lawyer

Our experienced franchise dispute lawyer can guide you through any conflict, whether you’re a franchisor or a franchisee. So you don’t have to worry when you reach us. At QBM Lawyers, we specialise in resolving franchise disputes through negotiation, mediation, or litigation.

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.

Moreover, franchise agreements can be complicated with many extra documents and services involved. Hence, 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

On the other hand, 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. Wondering what mediation is? Mediation is where an expert helps both parties to find a solution that works for them.

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. Usually, a legal action is 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 Lawyer

At QBM Lawyers, our franchise dispute lawyer in Gold Coast is well-versed in the Franchising Code of Conduct and the nuances of franchise law. Thus, 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.