49Franchisor’s consent to transfer

49 Franchisor’s consent to transfer

Giving consent (1) A franchisor must advise, in writing, a person who has made a request under section 48 for consent to the transfer of a franchise agreement: (a) whether consent is given, and if not, give reasons why not; and (b) if consent is given—whether the franchisor’s consent is subject to one or more conditions being satisfied. (2) A franchisor must not unreasonably withhold consent to the transfer of a franchise agreement.

Note: A franchisor may reasonably withhold consent to the transfer of a franchise agreement in the circumstances provided by subsection (6).

Civil penalty: 600 penalty units.

Consent taken to be given (3) If the franchisor does not advise the person, in writing, that the franchisor does not consent to the transfer of the franchise agreement within 42 days of the later of: (a) the date the request is made; and (b) if the franchisor seeks further information—the date the last of the information is provided to the franchisor; then: (c) the franchisor is taken to have given consent; and (d) that consent cannot be revoked under subsection (4). Revoking consent (4) Within 14 days of giving consent, the franchisor may revoke it by advising the person, in writing, that the franchisor’s consent is revoked and the reasons why consent has been revoked. (5) A franchisor must not unreasonably revoke the franchisor’s consent to the transfer of a franchise agreement.

Note: A franchisor may reasonably revoke the franchisor’s consent to the transfer of a franchise agreement in the circumstances provided by subsection (6).

Civil penalty: 600 penalty units.

Circumstances in which franchisor’s consent may reasonably be withheld or revoked (6) Without limiting the circumstances in which a franchisor’s consent may be reasonably withheld or revoked, a franchisor may reasonably withhold consent, or reasonably revoke consent, to the transfer of a franchise agreement in the following circumstances: (a) the prospective franchisee is unlikely to be able to meet the financial obligations that the prospective franchisee would have under the franchise agreement; (b) the prospective franchisee does not meet a reasonable requirement of the franchise agreement for the transfer of the franchise agreement; (c) the prospective franchisee does not meet the selection criteria of the franchisor; (d) the prospective franchisee does not agree, in writing, to comply with the obligations of the franchisee under the franchise agreement; (e) the franchisee has not paid or made reasonable provision to pay an amount owing to the franchisor; (f) the franchisee has not remedied a breach of the franchise agreement.