Earlier this month we reviewed the first five recommendations Mr
Alan Wein made to changes to the Franchising Code of Conduct. In
this article, we have looked at the next four recommendations, six
to nine.
Recommendation 6(a)
The Code be amended to provide franchisees and franchisors
with a right to terminate the franchise agreement in the event that
any administrator of the other party does not turn the business
around, or a new buyer is not found for the franchise system,
within a reasonable time after the appointment of an administrator.
It should be made possible for the courts to make an order
extending the timeframe in appropriate cases. It should also be
clear that the parties can negotiate a right to terminate at an
earlier stage.
