58Termination by franchisor on grounds for which franchisee may notify dispute

58 Termination by franchisor on grounds for which franchisee may 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 voluntarily abandons the franchised business or the franchise relationship; (b) the franchisee operates the franchised business in a way that endangers public health or safety; (c) the franchisee acts fraudulently in connection with the operation of the franchised business. (2) The franchisor must give the franchisee written notice (the termination notice) of the proposed termination and the ground for it. (3) The franchisor must not terminate the agreement before: (a) if, within 7 days after the day the termination notice is given (the notice period), the franchisee does not give the franchisor written notice (a dispute notice) under subsection 72(1) or a corresponding provision of the franchise agreement about a dispute relating to the proposed termination—the end of the notice period; or (b) if, within the notice period, the franchisee gives the franchisor a dispute notice—the end of 28 days after the day the dispute notice is given.

Civil penalty: 600 penalty units.

Rapid appointment of ADR practitioner or arbitrator for dispute (4) If, within the notice period, the franchisee gives the franchisor a dispute notice: (a) despite subsections 72(3), (4) and (5) or corresponding provisions of the franchise agreement: (i) the franchisee may refer the matter to an ADR practitioner for an ADR process if the franchisee and franchisor do not agree promptly how to resolve the dispute; and (ii) either the franchisee or the franchisor may request the Ombudsman to appoint an ADR practitioner for the ADR process relating to the dispute if the franchisee and franchisor do not agree promptly on who should be the ADR practitioner; and (iii) if requested, the Ombudsman must appoint an ADR practitioner as soon as practicable; and (b) despite paragraph 80(4)(a), the Ombudsman must appoint an arbitrator for the dispute as soon as practicable after receiving a request from the parties to the franchise agreement to do so.