Competition and Consumer (Industry Codes—Franchising) Regulations 2024
59Requiring franchisee to cease operating franchised business on termination grounds
Start here
Get a plain-English read of 59
Turn the raw legal text into a practical explanation grounded in Competition and Consumer (Industry Codes—Franchising) Regulations 2024.
59 Requiring franchisee to cease operating franchised business on termination grounds
If: (a) a franchise agreement provides for the franchisor to take action to cause or require the franchisee not to operate all or part of the franchised business on a ground mentioned in subsection 57(1) or 58(1); and (b) that action would involve termination of the franchise agreement by the franchisor; and (c) the franchisor proposes to take that action; the franchisor may, by written notice given to the franchisee, require the franchisee not to operate the business or the part of the business because of that ground.
Note: In this case, while subsections 57(2) and 58(3) prevent the franchisor from terminating the agreement before a certain time, the franchisor may, under this section, require the franchisee not to operate all or part of the franchised business.