Unfair Contract Terms or Poor Franchisor Behaviour?


Are unfair contract terms in pro forma contracts causing loss to your small business?


Has your franchisee business suffered loss because of wrongdoing by the franchisor?


Tell us what’s happening and we may be able to help.

From 12 November 2016 small businesses have had remedies for unfair contract terms in standard form contracts.

Whether remedies exist depends on the term and circumstances, and Adley Burstyner can assist with identifying if the law is likely to help.

Examples from the regulator of what might be illegal, are:

  • One-sided contract terms, for example to end or vary a contract
  • Terms which limit obligations unequally between parties, or which have unequal consequences for breaking contract terms
  • Misleading and deceptive conduct
  • Unconscionable conduct
  • In the case of a franchise (as well as the above):
    • Not acting in good faith
    • Not having a marketing fund audited annually, or not sharing annual financial statements of the marketing fund (showing receipts and expenses)
    • Churning
    • Imposing set prices or minimum prices
    • Forcing supplies to be purchased from particular sources
    • Failing to make adequate or any of the required disclosures, especially before receiving non-refundable payments

If you believe a contract term is unfair, ask the other party to not enforce it. If you don’t get the outcome you want, let Adley Burstyner lawyers know and we would be pleased to discuss your rights to compensation.

You can let us know by completing the following form or email us at info@adleyburstyner.com.au: