What Are the Legal Options for Franchisees Facing Unfair Treatment in Perth?

A franchise is an establishment that is granted authority by a company or a business to operate on its behalf in a particular territory. The company lends their brand name, and the franchisee follows the franchisor’s system but runs their own operations. In order to retain the quality and infrastructure of the product, the company has to share their intellectual property, which requires the guidance of franchise lawyers Perth to avoid any legal complications in the future.

What are Franchise Disputes?

Giving complete authority to another establishment to operate under their brand’s name requires good faith and effective communication. When either of them is breached, it leads to incorrect or misleading information being passed down from the franchisor to the franchisee, increasing the chances of the latter making a poor business decision, affecting revenue generation.

Disagreements over fees and operational supply issues can quickly escalate, so the intervention of a franchise dispute lawyer, WA is necessary to mitigate the problem and make both parties come to an understanding.

What are the Legal Rights of a Franchisee?

The business or company that is lending its authority is a more powerful entity than the establishment responsible for diversifying and expanding its brand name. So, franchisee legal rights Perth are established to protect the interests of the subsidiary body.

• Under that law, a franchisor is not allowed to set prices for the sale of goods within the geographic area in which the franchisee has the right to operate. Also, the brand cannot force the establishment borrowing its name to source products from a particular third-party supplier unless they are a part of the brand itself or a related company.
• Proper terms must be included that state whether the franchisee has the right to renew their agreement at the end of the term, and how much notice period should be given for the establishment to inform them of their wish to continue using the company’s brand name.
• Similarly, if the franchisor wishes to extend or grant another franchise agreement, they must inform and provide documents to their franchisee 6 months before the end of the contract. In case the term of the agreement is less than 6 months, a 1-month notice period is mandatory.

Along with that, reasonable grounds for termination clauses must be stated, which can be in the form of failure to pay the royalty fees, bankruptcy, threat to public health affecting the brand’s image or engaging in criminal behaviour.

Steps to Take Regarding Franchise Disputes

During such a vital collaboration of creating a franchise, transparent agreements should be drafted to ensure proper disclosure and good faith. In case you feel there are one-sided contract terms and inadequate training support from the franchisor, you should be aware of how to handle unfair franchise agreements in Perth.

• Every franchisor must provide a disclosure document and a copy stating that they adhere to the Franchising Code of Conduct in Perth during the signing of the contract. Find and highlight any differences between the written terms and what was spoken verbally, along with unfair clauses.
• Write a formal Notice of Dispute, clearly stating the conditions responsible for the disagreement and directly approach the franchisor. Under the Franchising Code of Conduct, you must act in good faith to avoid penalties, so you must ensure transparency from your side. Record all conversations and documents presented in that meeting.
• If the issue is still not resolved, then you must seek the help of a mediator before approaching the court. It is stated in the Franchising Code of Conduct to approach either the WA or ASBFEO to make genuine attempts to settle the disagreement.
• If the breach of the Code is severe and the mediation fails, then you should take all the documents and proofs procured from these events and submit them to the Australian Competition and Consumer Commission (ACCC). If approved, you must present your case in legal court and choose a law firm with capable litigation lawyers to represent your case.

Role of a Litigation Lawyer

Taking matters to the court indicates a serious conflict that needs to be carefully handled by skilled litigation lawyers Perth. Providing valuable advice after understanding all the legal implications and evidence, discussing with the complainant about the best possible outcome of settlement and representing the victim throughout the legal proceedings are the essential duties of a litigation lawyer in Perth.

Final Thoughts

In some cases, the mediator responsible for early resolution of the dispute also offers services to represent your establishment in court. Such a commercial litigation lawyer WA not only guides you to resolve the issue out of court if possible, but also oversees the entire legal proceedings in case the amicable resolution is called off.

Hence, it is advisable to seek a reputable law firm dedicated to providing excellence and accurate representation of your grievance in court.