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Home > Franchisor > Franchise Law / Franchise Regulations (Australia) > Franchise Regulations and Mediation
Under Australian franchise law, the Franchising Code of Conduct, parties to franchise agreements are required to mediate in the event of franchise problems or a dispute.
The Office of the Franchising Mediation Adviser was created at the time of the Franchising Code and can assign mediators to help resolve a franchise dispute if the parties to the dispute cannot agree on a mediator between themselves.
Mediation is much quicker and cost-effective than litigation.
Figures from the Office of the Franchising Mediation Adviser indicate that up to 75 percent of mediations referred to the Office result in a settlement.
A mediated settlement is an outcome both parties find acceptable, and can be reached in hours or days, rather than a litigation which can stretch on for months or years.
Further, the cost of mediation can be a small fraction of formal litigation, with costs of $1,500 per party not uncommon.
Mediation can bring resolution to a franchise dispute that can allow both parties to go forward with certainty thereafter, whereas litigation is an extended process that may still result in an appeal and further time and cost delays if the franchise law outcome is not acceptable to both parties.
The Centre has conducted a range of research into franchise conflict. View our franchise conflict research results here.
