Overview

This module covers the following topics:

• Key findings of conflict research;
• What happens when conflict occurs;
• What is a breach notice;
• What is a notice of dispute;
• What happens at a mediation; and
• Minimising future potential for conflict.

Learning Outcomes

On completion of this module, you will understand common causes of conflict in franchise relationships, and how franchisee and franchisor attitudes toward these causes can differ.

You will also learn about the dispute resolution provisions of the Franchising Code of Conduct, and ways to reduce the potential for conflict to occur.

Activity One:

• If you are considering buying a franchise, ask your franchisor to put in writing the details of support they will provide; OR 

• If you are an existing franchisee, reflect on the structured and ad hoc support you receive from your franchisor and determine what type adds the most value to your business, then contact your franchisor and ask how you can maximise the value from your next field visit, eg, you could agree in advance on agenda items, allocate sufficient time for the visit, agree on action items during field visits, and follow up action items after the visit.

Activity Two:

• Read Part 4 of the Franchising Code of Conduct (PDF 226KB); and the Franchising Australia 2010 Report section on franchise conflict (PDF 800KB).

• The opinion as to the source of conflict in franchising is different as to if you are viewing it from the franchisors side or the franchisees side.  Being aware of the source of conflict is important as conflict can cause many issues within a franchise relationship.  Being aware of the source and why conflict occurs, means that you can be aware of it and address any issues should they arise. View the Causes of Conflict from both perspectives via this graph (PDF 105KB).

Activity Three:

• Review Q&A interview with Assistant Franchising Mediation Adviser Bianca Keys from the Office of the Franchising Mediation Adviser where she talks about conflict in franchise relationship and how mediation can assist. Download the video transcript (PDF 132KB).

Activity Four:

• Visit the Office of the Franchising Mediation Adviser website.

• Read the various sections of the website, including Steps to Resolve a Franchise Dispute, the Cost of Mediation and Preparing for Mediation. Download the Breach Notice Template (Word doc 100KB) from the website to familarise yourself with the format.

• Review this example Breach Notice (PDF 1.3MB).