73Similar disputes between 2 or more franchisees and one franchisor

73 Similar disputes between 2 or more franchisees and one franchisor

(1) This section applies if 2 or more franchisees have similar disputes under their franchise agreements with the same franchisor. (2) The franchisees and the franchisor may agree to resolve their disputes in the same way. (3) For the purpose of deciding whether to agree to resolve their disputes in the same way, the franchisees may discuss their disputes with each other, despite any confidentiality requirements provided in their franchise agreements. (4) If any of the franchisees and the franchisor cannot agree how to resolve their disputes, all of the franchisees (who cannot agree) or the franchisor may refer the matter to a single ADR practitioner in accordance with subsection 72(3) for a single ADR process for all of their disputes.

Note: Each of the disputes remains separate, even if there is a single ADR process dealing with all of them.

(5) If any of the franchisees and the franchisor cannot agree on who should be the ADR practitioner, all of the franchisees (who cannot agree) or the franchisor may request the Ombudsman in accordance with subsection 72(4) to appoint a single ADR practitioner for a single ADR process for all of their disputes. (6) If: (a) under subsection (4), all of the franchisees refer the matter to a single ADR practitioner for a single ADR process for all of their disputes; or (b) under subsection (5), all of the franchisees request the appointment of a single ADR practitioner for a single ADR process for all their disputes and the appointment is made; but the franchisor does not agree that there should be a single ADR process for all the disputes or does not agree to the appointment of the ADR practitioner, the ADR practitioner may conduct the ADR process despite the franchisor’s disagreement.

Note: If the ADR practitioner conducts the ADR process despite the franchisor’s disagreement, the franchisor is required to attend the ADR process and try to resolve the dispute (see subsections 74(3) and (4)). Section 71 (when a party is taken to be trying to resolve a dispute) applies in relation to all the parties to the disputes.