57Termination by franchisor with 7 days’ notice on grounds for which franchisee may not notify dispute

57 Termination by franchisor with 7 days’ notice on grounds for which franchisee may not notify dispute

(1) This section applies if a franchise agreement gives the franchisor power to terminate the agreement on any of the following grounds: (a) the franchisee no longer holds a licence that the franchisee must hold to carry on the franchised business; (b) the franchisee becomes bankrupt, insolvent under administration or a Chapter 5 body corporate; (c) the franchisee is a company that is deregistered by the Australian Securities and Investments Commission; (d) in proceedings for an order in relation to a Fair Work serious contravention of a Fair Work civil remedy provision, a court is satisfied that the franchisee has committed that serious contravention; (e) in proceedings for a civil penalty order in relation to a contravention of section 245AAA, 245AAB or 245AAC of the Migration Act 1958, a court is satisfied that the franchisee has contravened the section concerned; (f) the franchisee is convicted of a serious offence; (g) the franchisee is convicted of an offence against section 245AAA, 245AAB or 245AAC of the Migration Act 1958.

Note: Section 451E of the Corporations Act may affect a franchisor’s power to terminate a franchise agreement on the ground mentioned in paragraph (1)(b).

(2) The franchisor must not terminate the agreement on a ground mentioned in subsection (1) unless the franchisor has given the franchisee 7 days’ written notice of the proposed termination and the ground for it.

Civil penalty: 600 penalty units.