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Log In / Register | Dec 19, 2014

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also omitted

how do you cope with a rogue that chooses to bypass the breach and terminate without any relevant cause and leaves the zee without the finance to defend themselves. At least with a breach notice the zee has the chance to find out if they are doing anything wrong and correct the situation. or as mentioned in another article gives the zee a heads up that they are about to be shafted.

Ray Borradale's picture

Re: also omitted

a rogue that chooses to bypass the breach and terminate without any relevant cause

Now that is a breach of the Code and unless the zor can con a lawyer into pre-dating a Notice the zor is screwed. In theory at least. 

The franchisee in such a case should be able to confidently complain to the ACCC even though the possibility of compensation is akin to winning lotto.  If he/she is lucky the complaint would be investigated and the zor could be sent to, wait for it .... 'compliance training' [quite a frightening deterrent really].  But nothing much in that, no matter what does or does not happen, changes the lot of that franchisee without funding to pursue civil remedy.

At least that is the situation across Australia at the moment.  South Australia may come up with a far better solution where such abuse and contempt for the Code and the regulator are not tolerated.

Note: Such behaviour typically has to start somewhere but generally there is history of similar tactics and contempt.