Document ID: chunk:federal_register_of_legislation:F2025C00176:clause:1_5:p1
Version: federal_register_of_legislation:F2025C00176
Segment Type: clause
Provision Reference: sch 1 cl 5 (pt 1/2)
Character Range: 16231–18960

5  Meaning of fuel re‑selling agreement
 (1) A fuel re‑selling agreement is a written, oral or implied agreement under which:
 (a) a supplier grants to a retailer the right to carry on a business (a fuel re‑selling business) in which the retailer offers, supplies or distributes motor fuel in Australia under a system or marketing plan substantially determined, controlled or suggested by the supplier or an associate of the supplier; and
 (b) the operation of the business will be substantially or materially associated with a trade mark, advertising or a commercial symbol:
 (i) owned, used or licensed by the supplier or an associate of the supplier; or
 (ii) specified by the supplier or an associate of the supplier; and
 (c) before starting the business, the retailer must pay or agree to pay to the supplier, or an associate of the supplier, an amount including, for example:
 (i) an initial capital investment fee; or
 (ii) a payment for goods or services; or
 (iii) a fee based on a percentage of gross or net income whether or not called a royalty or agreement service fee; or
 (iv) a training fee or training school fee;
  but excluding:
 (v) payment for motor fuel at or below the usual wholesale price; or
 (vi) payment for the usual wholesale price of motor fuel taken on consignment; or
 (vii) payment of market value for purchase or lease of real property, fixtures, equipment or supplies needed to start the business.
Note: To meet the requirements of paragraph (1)(a), a supplier must have a substantial ongoing role in the retailer's operations, in addition to being responsible for branding and supplying fuel. For example:
(a) a traditional franchise or commission agency arrangement would meet the requirements of the paragraph because of the supplier's substantial ongoing role in the operations; but
(b) a 'supply only' or 'supply and branding only' agreement with an owner‑dealer would not meet the requirements of the paragraph.
 (2) A fuel re‑selling agreement is a written, oral or implied agreement under which:
 (a) a supplier consents to being a transferee in relation to a fuel re‑selling business; and
 (b) the operation of the business will be substantially or materially associated with a trade mark, advertising or a commercial symbol:
 (i) owned, used or licensed by the supplier or an associate of the supplier; or
 (ii) specified by the supplier or an associate of the supplier.
 (3) Each of the following is also taken to be a fuel re‑selling agreement:
 (a) the renewal or extension of a fuel re‑selling agreement;
 (b) a commission agency to which the requirements of:
 (i) paragraphs (1)(a) and (b) apply; or
 (ii) subclause (2) applies;
 (c) an interest in a fuel re‑selling agreement.