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Franchising Disputes in Australia

Franchising Disputes in Australia Australian Franchising Industry There are approximately |l80 Australian franchisors 1000 800 600 1998 1999 2002 2004 2006 2008 2010 2012 400,000+ People employed in franchising $131 BILLION+ Industry sales turnover 90% 70,000+ Of franchises are operating profitably Franchises in Australia Top 5 Industries 27% 18% 16% 10% 7% Retail Trade Accomodation & food services support services Admin & Other Services Rental, hire & real estate services Franchising Disputes 18% of franchisors have been involved in substantial disputes (those referred to an external advisor for action) Most common causes of franchising disputes 46% System Compliance Issues 39% Franchise Fees 31% Territorial Issues 31% Profitability 31% Misrepresentation Issues Resolving Franchising Disputes Informal Resolution The Franchising Code of Conduct states that parties should first try to resolve a dispute with each other. 66% of disputes are resolved in correspondence with a solicitor Mediation If the parties can't agree on an outcome within 3 weeks, they can opt for mediation - an informal negotiation facilitated by an independent third party. 10% of disputes are resolved at mediation Litigation If not resolved through mediation, legal action may be necessary. Obtaining legal advice is recommended. Only 24% reach litigation stage Litigation 24% Mediation or correspondence via solicitor Only 24% of disputes reach litigation stage, due to the effectiveness of informal 76% discussions and mediation. Sources: Griffith University Asia-Pacific Centre for Franchising Excellence (2012). Franchising Australia 2012. Retrieved from /franchising-australia-2012-research-report Australian Competition & Consumer Commission (2011). Resolving franchising disputes. Retrieved from Turner Freeman Lawyers For more information on franchise disputes or franchise agreements, contact Turner Freeman Lawyers Queensland. 1200 %24

Franchising Disputes in Australia

shared by vharrison2006 on Apr 10
Buying a franchise can be a life-changing experience. There are many reasons why you might consider becoming your own boss and open or buy a franchise. In Australia, the franchising industry is risin...


Eva Vass


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