The ACCC has recently publicised the results of a study which it co-funded in relation to franchising relationships. The study was undertaken by Griffith University on issues arising in franchise conflict.

The study raised a concern that many franchisees were not using mediation services to resolve issues in the franchise relationship. This was despite the fact that the Franchising Code of Conduct provides a clear mechanism in clause 29 for mediation to be used to endeavour to resolve disputes.

In its press release issued on 10 May 2010, the ACCC said:

"The ACCC will look to address some of the issues raised in this study through further education of the franchising sector, with a particular focus on prospective franchisees. Ideally, all franchise systems should develop effective in-house compliance systems to prevent conflict escalating to the point where a complaint is lodged with the ACCC."

As part of Norton Rose's Franchise Workshop Series, we recently held a seminar dealing with the mediation process and strategies for obtaining most effectively utilising mediation. You can access the notes from our Workshop Series here.

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