Document ID: chunk:federal_register_of_legislation:F2024L01605:reg:57
Version: federal_register_of_legislation:F2024L01605
Segment Type: reg
Provision Reference: reg 57
Character Range: 91872–93437

57  Termination by franchisor with 7 days' notice on grounds for which franchisee may not notify dispute
 (1) This section applies if a franchise agreement gives the franchisor power to terminate the agreement on any of the following grounds:
 (a) the franchisee no longer holds a licence that the franchisee must hold to carry on the franchised business;
 (b) the franchisee becomes bankrupt, insolvent under administration or a Chapter 5 body corporate;
 (c) the franchisee is a company that is deregistered by the Australian Securities and Investments Commission;
 (d) in proceedings for an order in relation to a Fair Work serious contravention of a Fair Work civil remedy provision, a court is satisfied that the franchisee has committed that serious contravention;
 (e) in proceedings for a civil penalty order in relation to a contravention of section 245AAA, 245AAB or 245AAC of the Migration Act 1958, a court is satisfied that the franchisee has contravened the section concerned;
 (f) the franchisee is convicted of a serious offence;
 (g) the franchisee is convicted of an offence against section 245AAA, 245AAB or 245AAC of the Migration Act 1958.
Note: Section 451E of the Corporations Act may affect a franchisor's power to terminate a franchise agreement on the ground mentioned in paragraph (1)(b).
 (2) The franchisor must not terminate the agreement on a ground mentioned in subsection (1) unless the franchisor has given the franchisee 7 days' written notice of the proposed termination and the ground for it.
Civil penalty: 600 penalty units.