55Termination by franchisor—breach by franchisee

55 Termination by franchisor—breach by franchisee

(1) This section applies if: (a) a franchisee breaches a franchise agreement; and (b) the breach is not a ground for termination mentioned in subsection 57(1) or 58(1); and (c) the franchisor proposes to terminate the franchise agreement because of the breach; and (d) the franchisee does not agree to the termination. (2) The franchisor must give the franchisee a written notice setting out the following: (a) that the franchisor proposes to terminate the franchise agreement because of the breach; (b) the things the franchisor requires to be done to remedy the breach; (c) the time (which must be a reasonable time, but need not be more than 30 days after the date of the notice) within which the franchisor requires those things to be done.

Civil penalty: 600 penalty units.

(3) The franchisor must not terminate the franchise agreement because of the breach if the breach has been remedied in accordance with the matters set out in the notice under paragraphs (2)(b) and (c).

Civil penalty: 600 penalty units.

(4) If the agreement is terminated because of the breach, Part 5 (resolving disputes) applies in relation to a dispute arising from the termination.