How franchise disputes are resolved
Disputes happen even in good franchises. Knowing the process, and that the law provides one, changes how you handle a disagreement.
How are franchise disputes resolved in Australia?
The steps in order
- Raise it internally, notify the other party in writing under the agreement's complaint procedure, stating the dispute and the outcome you want.
- Try to resolve it directly, both parties must genuinely attempt this.
- Alternative dispute resolution, if unresolved, refer it to mediation or conciliation; ASBFEO can assist in arranging it.
- Court, only as a last resort if ADR fails.
Where ASBFEO and the ACCC fit
ASBFEO supports small businesses through the dispute process and can help arrange mediation or conciliation. The ACCC enforces the Franchising Code, it does not resolve individual commercial disputes for you, but it acts on breaches of the Code. Understanding the difference matters: ADR resolves your dispute; the ACCC polices conduct.
How to reduce the chance of a dispute
Most disputes trace back to unclear expectations at the start, over territory, fees, support or performance. Read the agreement carefully, get it reviewed by a franchise lawyer, and confirm what the franchisor will actually provide before you sign. Good record-keeping and early, written communication resolve most issues before they become formal disputes.
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Frequently asked questions
What is the process for a franchise dispute in Australia?
Under the Franchising Code 2025 you first use the internal complaint procedure in your agreement, notifying the other party in writing and attempting to resolve it. If that fails, either side can refer it to mediation or conciliation, which ASBFEO can help arrange. Court is a last resort.
Does the ACCC resolve franchise disputes?
No. The ACCC enforces the Franchising Code and acts on breaches, but it does not resolve individual commercial disputes for you. For that, use the internal process and then mediation or conciliation, with ASBFEO's help if needed.
What is ASBFEO in franchising?
The Australian Small Business and Family Enterprise Ombudsman supports small businesses, including franchisees, through the dispute-resolution process and can help arrange mediation or conciliation when an internal complaint cannot be resolved.
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