Notice of dispute
What it means
When a franchising disagreement cannot be resolved informally, the Code's dispute procedure begins with a written notice of dispute. It identifies what the dispute is about, what the party wants, and how it might be resolved.
Issuing a notice of dispute triggers a structured process, the parties must try to agree on how to resolve it, and can move to mediation, conciliation or arbitration. It replaces ad-hoc argument with a defined pathway.
In practice
Keep records. A clear, factual notice of dispute, supported by dated correspondence and evidence, sets up the mediation or conciliation that follows and demonstrates you have acted in good faith.
A real example
After months of unresolved emails about marketing-fund spending, a franchisee sends a formal notice of dispute, which obliges the franchisor to engage in the Code's dispute-resolution steps.
Notice of dispute, FAQs
How do I start a franchising dispute formally?
By issuing a written notice of dispute under the Code, stating the nature of the dispute and the outcome you want. It triggers the obligation to try to resolve it through the Code's process.
What happens after a notice of dispute?
The parties must try to agree how to resolve it and, if needed, proceed to mediation, conciliation or, by agreement, arbitration. The ASBFEO can help arrange a mediator.
See the full franchise glossary, the Fee Index or our buyer guides.