A dispute with a franchisor can happen for any number of reasons. For whatever the reason, we can help you navigate your dispute to a fair resolution.
Breach Notice & Notice of Dispute
In the event of a dispute between a franchisor and franchisee, there are specific procedures that must be followed to ensure compliance with the Franchising Code of Conduct. One of the first formal steps is issuing a Notice of Dispute, as required under Franchising Code of Conduct.
What Is a Notice of Dispute?
A Notice of Dispute formally initiates the dispute resolution process under the Code. It must be provided in writing and include the following information:
- The nature of the dispute
- The outcome sought by the party lodging the notice
- The actions the party believes will resolve the dispute
Issuing a Notice of Dispute is a necessary procedural step before further dispute resolution mechanisms, such as mediation, can be pursued.
Outlining the Nature of the Dispute
The nature of the dispute must be clearly articulated and supported by factual detail. It should include:
- A description of the issue in dispute
- The date the issue first arose
- The impact of the issue on the business or relationship
- Reference to any relevant clauses in the Franchise Agreement or the Franchising Code that have allegedly been breached
- An explanation of how and when the breach occurred
A well-structured summary of the dispute can assist all parties in understanding the matter and facilitate early resolution.
Stating the Outcome Sought
The Notice should set out what the party is seeking to resolve the dispute. This may include specific actions by the other party, financial compensation, or other remedies. The outcome proposed should be reasonable, clearly defined, and aimed at resolving the matter efficiently.
Proposing a Resolution
The Notice must also specify what actions the party believes will resolve the dispute. These actions should be transparent, realistic, and capable of being implemented by both parties. Clearly outlining a proposed resolution assists in narrowing the issues and provides a constructive starting point for negotiations or mediation.
Frequently Asked Questions
What is a Notice of Dispute?
It’s a formal document required by the Franchising Code of Conduct that starts the dispute resolution process.
What details must be in the Notice?
It must include:
- Nature of the dispute
- Desired outcome
- Proposed resolution actions
Can I go to court without a Notice of Dispute?
No. The Franchising Code requires this step before you can take further action, such as mediation or litigation.
What happens if the franchisor ignores the dispute?
We can help escalate the matter through mediation or legal action, depending on the situation.