Document ID: chunk:federal_register_of_legislation:F2022C01111:clause:1_27
Version: federal_register_of_legislation:F2022C01111
Segment Type: clause
Provision Reference: sch 1 cl 27
Character Range: 74894–76065

27  Termination—breach by franchisee
 (1) This clause applies if:
 (a) a franchisee breaches a franchise agreement; and
 (b) the franchisor proposes to terminate the franchise agreement.
 (2) The franchisor must:
 (a) give to the franchisee reasonable notice, in writing, that the franchisor proposes to terminate the franchise agreement because of the breach; and
 (b) tell the franchisee what the franchisor requires to be done to remedy the breach; and
 (c) allow the franchisee a reasonable time to remedy the breach.
Civil penalty: 600 penalty units.
 (3) For paragraph (2)(c), the franchisor does not have to allow more than 30 days.
 (4) If the breach has been remedied in accordance with paragraphs (2)(b) and (c), the franchisor must not terminate the franchise agreement because of the breach.
Civil penalty: 600 penalty units.
 (4A) Subclauses (2) and (4) do not prevent the franchisor from exercising a power under the agreement to terminate the agreement if, at the time of the termination, the franchisor and franchisee agree to the termination.
 (5) Part 4 (resolving disputes) applies in relation to a dispute arising from termination under this clause.