Automotive franchised dealers now have a tool to assist with franchise disputes, which could negate expensive legal advice, thanks to the Victorian Automobile Chamber
of Commerce (VACC).
VACC has rolled out its new Franchise Code Dispute Assist online tool that alerts VACC of franchisee-franchisor disputes. The information added to the online tool will be aggregated to assist with dispute settlement.
“VACC Franchise Code Assist is designed to provide an efficient, low cost and effective pathway to dispute resolution services for members. It also has an added purpose of capturing all information involved in franchisee-franchisor disputes,” said VACC Executive Director, Geoff Gwilym.
Disputes could be in the form of non-renewal or termination of agreements, unilateral alteration to
prime marketing areas, unfair contract terms, or unreasonable pressure from franchisors with regard
to ‘cyber cars’.
“It’s a new tool for VACC’s franchised dealer members designed to escalate franchise disputes. It can also assist members in the management of their franchise relationships, while potentially saving them money,” added Mr Gwilym.
The tool identifies whether both parties in the franchise agreement are adhering to their obligations under the current Franchising Code.
“VACC continues to support its franchise dealer members who are experiencing disputes with their franchisors. VACC has had recent success with such disputes in the Victorian Small Business Commission and with the Office of the Franchising Mediation Adviser,” said Mr Gwilym.
“What’s more, VACC intends to vigorously test the adequacy of the current franchising code for franchise dealer members by applying select criteria from the franchising code.”
VACC lobbied for the introduction of an automotive retail-specific franchise code as far back as the Franchising Code Review (the Wein Review) in 2013.
Meanwhile, VACC continues to advocate for an industry code that recognises the level of investment motor industry dealers make and the sophisticated nature of dealerships compared to other franchise businesses.
“With member approval, the nature of the franchise dispute, as provided to VACC Franchise Code Assist,
along with the identity of the franchisor, will be included in communications to the Australian Competition
and Consumer Commission,” said Mr Gwilym.
VACC Franchise Code Assist is a free service to VACC franchisee members.
ENDS
VACC Franchise Code Assist does not constitute legal advice.