40Jurisdiction for settling disputes

40 Jurisdiction for settling disputes

(1) A franchise agreement may contain a section that: (a) if a party to the agreement wishes to bring an action or proceedings in relation to a dispute under the agreement, requires the party to bring the action or proceedings in a State or Territory in which the franchised business is based; or (b) if a party to the agreement wishes to refer a dispute under the agreement to an ADR process, requires the ADR process to be conducted in a State or Territory in which the franchised business is based. (2) A franchisor must not enter into a franchise agreement that contains a section that: (a) requires a party to the agreement to bring an action or proceedings in relation to a dispute under the agreement: (i) in any State or Territory outside that in which the franchised business is based; or (ii) in any jurisdiction outside Australia; or (b) requires an ADR process for a dispute under the agreement to be conducted: (i) in any other State or Territory outside that in which the franchised business is based; or (ii) in any jurisdiction outside Australia.

Civil penalty: 600 penalty units.