56Termination by franchisor—no breach by franchisee

56 Termination by franchisor—no breach by franchisee

(1) This section applies if: (a) a franchisor proposes to terminate a franchise agreement: (i) in accordance with the agreement; and (ii) other than on a ground mentioned in subsection 57(1) or 58(1); and (iii) before it expires; and (iv) without the consent of the franchisee; and (b) the franchisee has not breached the agreement. (2) For the purposes of subparagraph (1)(a)(iv), a condition of a franchise agreement that a franchisor can terminate the franchise agreement without the consent of the franchisee is not taken to be consent. (3) The franchisor must not terminate the franchise agreement unless the franchisor has given the franchisee reasonable written notice of the proposed termination, and reasons for it.

Civil penalty: 600 penalty units.

(4) If the agreement is terminated as mentioned in this section, Part 5 (resolving disputes) applies in relation to a dispute arising from the termination.