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Legal Forums » Franchising Law Discussion Forum » MANDATORY MEDIATION: INTRODUCING A NEW ERA OF FRANCHISING DISPUTE RESOLUTION
Started Dec 22 2012, 19:29
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Dec 22 2012, 19:29
Under the Code, a franchise agreement entered into, transferred, renewed or extended on or after 1 October 1998 must contain an internal complaint handling procedure which complies with the procedure outlined in Part 4 of the Code. That procedure is, in appropriate circumstances, to be pursued by the parties to a franchising dispute. The procedure can be initiated by a party in dispute writing to the other party regarding both the nature of the dispute and what is needed to settle the dispute.
Once the complaint handling procedure is invoked, the parties should try to agree on how to resolve the dispute. Where such agreement is not reached within three weeks, either party may refer the dispute to a mediator who is acceptable to the parties. If the parties cannot agree to a suitable mediator, then either party may ask the Federal Government-appointed Mediation Adviser to appoint a mediator. In such circumstances, the Mediation Adviser is required to appoint a mediator within 14 days. Once appointed, the mediator may decide the time and place of the mediation. In turn, the parties to the dispute are to attend the mediation and try to resolve the dispute.
ID#43405
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