85Notification obligation—franchisor

85 Notification obligation—franchisor

(1) The franchisor of a franchise agreement must notify the franchisee, in writing, whether the franchisor intends to: (a) extend the agreement; or (b) enter into a new franchise agreement with the franchisee; or (c) neither extend the agreement nor enter into a new franchise agreement with the franchisee. (2) If the term of the agreement is 12 months or longer, the franchisor’s notice must be given: (a) at least 12 months before the end of the term of the agreement; or (b) if the parties to the agreement agree on a later time—before that later time.

Civil penalty: 600 penalty units.

(3) If the term of the agreement is less than 12 months, the franchisor’s notice must be given: (a) if the term of the agreement is 6 months or longer—at least 6 months before the end of the term of the agreement; and (b) if the term of the agreement is less than 6 months—at least 1 month before the end of the term of the agreement.

Civil penalty: 600 penalty units.

(4) If the franchisor intends to enter into a new franchise agreement with the franchisee, the franchisor’s notice must include a statement to the effect that, subject to subsection 32(2), the franchisee may request a disclosure document under section 32.

Civil penalty: 600 penalty units.

(5) If the franchisor gives a notice that the franchisor intends to neither extend the agreement nor enter into a new franchise agreement with the franchisee, the notice must include the reasons for the franchisor’s intention.

Civil penalty: 600 penalty units.