53Repayments following termination by new franchisee

53 Repayments following termination by new franchisee

Application (1) This section applies if, by notice given under subsection 52(2), a new franchisee ceases to be the franchisee for the purposes of a franchise agreement. Repayments from franchisor to new franchisee (2) The franchisor must, within the period of 14 days starting on the day after the notice was given, repay all payments (whether of money or of other valuable consideration) made by the new franchisee to the franchisor under the franchise agreement, less any amount that may be deducted under subsection (3).

Civil penalty: 600 penalty units.

(3) The franchisor may deduct an amount equal to the franchisor’s reasonable expenses relating to the new franchisee ceasing to be the franchisee if those expenses or their method of calculation are set out in the agreement. Repayments from old franchisee to new franchisee (4) The old franchisee must, within the period of 14 days starting on the day after the notice was given, repay all payments (whether of money or of other valuable consideration) made by the new franchisee to the old franchisee under the transfer agreement, less any amount that may be deducted under subsection (5).

Civil penalty: 600 penalty units.

(5) The old franchisee may deduct an amount equal to the old franchisee’s reasonable expenses relating to the termination of the transfer agreement if those expenses or their method of calculation are set out in the transfer agreement.