Document ID: chunk:federal_register_of_legislation:F2024L01605:reg:40
Version: federal_register_of_legislation:F2024L01605
Segment Type: reg
Provision Reference: reg 40
Character Range: 66315–67462

40  Jurisdiction for settling disputes
 (1) A franchise agreement may contain a section that:
 (a) if a party to the agreement wishes to bring an action or proceedings in relation to a dispute under the agreement, requires the party to bring the action or proceedings in a State or Territory in which the franchised business is based; or
 (b) if a party to the agreement wishes to refer a dispute under the agreement to an ADR process, requires the ADR process to be conducted in a State or Territory in which the franchised business is based.
 (2) A franchisor must not enter into a franchise agreement that contains a section that:
 (a) requires a party to the agreement to bring an action or proceedings in relation to a dispute under the agreement:
 (i) in any State or Territory outside that in which the franchised business is based; or
 (ii) in any jurisdiction outside Australia; or
 (b) requires an ADR process for a dispute under the agreement to be conducted:
 (i) in any other State or Territory outside that in which the franchised business is based; or
 (ii) in any jurisdiction outside Australia.
Civil penalty: 600 penalty units.