The Franchising Code of Conduct provides a choice of dispute resolution procedures for parties to a Franchise Agreement. Either party may choose to commence the dispute resolution through the internal complaint-handling procedure or the Code’s complaint-handling provisions.

Internal complaint-handling system

This procedure must comply with the complaint-handling system mandated by the Code and is often outlined in the Franchising Agreement. This should be the first point of call for franchisees and franchisors. Only when the internal complaint-handling system is proven to be ineffective in resolving a particular dispute should other measures be considered.

Code complaint-handling system

The Code provides that mediation, if requested by a party to a franchising dispute, is compulsory under the Competition and Consumer Act (formerly the Trade Practices Act). Mediation can be obtained from any qualified mediation/dispute resolution service, however, the Code also provides for a cost-effective Office of the Franchising Mediation Adviser. The Officer of the Mediation Adviser is an independent organisation created by the federal Department of Innovation, Industry, Science and Research (DIISR). The Office of Mediation Adviser can be contacted on 1800 150 667.