Franchise Disputes
Resolved at mediation wherever it can be
Most franchising disputes must go to mediation before a court will hear them. That is an advantage, not an obstacle. Mediation is confidential, faster and far cheaper than litigation. We have resolved 162 disputes there since 2013.
Since 2013 · Minerva Law
162
Disputes resolved at mediation
2,880
Franchise agreements reviewed
63
Franchisor systems established
What we do
The disputes we run
Franchise disputes follow patterns. Knowing which pattern you are in usually tells you how it ends.
01
Breach and termination
Notices that hold, or notices that do not
A defective breach notice is the most common reason a termination fails. We act for franchisors issuing them and franchisees receiving them, never both in the same matter.
02
Territory and supply
When the deal stops matching the document
Encroachment on an exclusive territory, online and delivery channels competing with a physical site, supply failures and forced-supplier pricing.
03
Misleading conduct
Financial claims made before signing
Earnings representations, turnover projections and verbal assurances that did not survive contact with the business. These run under the Australian Consumer Law as well as the Franchising Code.
04
Restraint of trade
After the relationship ends
Restraint clauses are common and often drafted more widely than a court will enforce. Whether one binds you is a question of drafting, geography and duration, not of how firmly it is worded.
05
Mediation under the Code
Confidential, and usually decisive
The Code process requires genuine participation. Preparation is what separates a mediation that resolves from one that adjourns: positions tested, numbers modelled, authority in the room.
06
Litigation
Where mediation cannot work
Injunctions to stop a termination or enforce a restraint, and proceedings in the Victorian and Federal courts where a commercial resolution is genuinely unavailable.
How we work
What happens first
01
The 24-hour question
Is there a deadline? A breach notice, a termination date or an injunction changes the order of everything. That gets answered first.
02
Position and exposure
What the documents actually allow, what the conduct actually was, and what each outcome is worth, before any letter goes out.
03
Mediation, prepared
Most matters resolve here. We go in with the numbers modelled and the alternatives priced, not with a position to defend.
Client feedback
Voices of excellence
Live rating and reviews from the firm’s Google Business Profile , not testimonials we wrote for ourselves.
Common questions
Franchise dispute questions, answered
Do I have to go to mediation?
For most franchising disputes, yes. The Franchising Code requires the parties to attempt mediation and to participate genuinely before litigation. Refusing to take part carries consequences.
My franchisor has issued a breach notice. What now?
Read the notice against the agreement immediately. It must identify the breach, state what is required to fix it and allow a reasonable period. Defective notices are common, and the time to raise that is before the period expires.
Can a franchisor terminate without notice?
Only in the limited circumstances the Code and the agreement allow: insolvency, abandonment, serious criminal conduct and similar. Outside those, a franchisor must give notice and an opportunity to remedy.
Is a restraint of trade clause enforceable?
Sometimes. A court will enforce a restraint only so far as it protects a legitimate interest. Duration, geographic reach and the scope of the restrained activity all matter, and widely-drafted restraints are frequently read down or struck out.
How long does a franchise dispute take?
A mediated resolution commonly takes weeks to a few months. Litigation takes considerably longer and costs materially more, which is the main reason so few of these matters should reach a courtroom.
Also relevant
Related services
Mediation services
Tsungai acts as an accredited mediator in franchise and commercial disputes.
Next step
In a franchise dispute, or about to be?
The earlier we see the documents and the notices, the more options you still have. Initial consultation is complimentary.