Notice · Franchising & Distribution

Franchisor notice of breach and opportunity to remedy (s 55 Franchising Code)

Franchisor’s notice to a franchisee of a breach, the steps required to remedy it and the time allowed, meeting s 55 of the Franchising Code, with a pre-issue checklist covering good faith, the agreement’s own notice terms and the separate s 57 and s 58 grounds.

Kind
Notice. A formal notice to serve or publish.
Where it applies
Australia
AI use
Red Keep AI out of the decisive steps. A lawyer does the work.
Law stated as at
17 October 2026
Status
Maintained. Checked against the cited sources on 17 October 2026.
Version
1
Source
Written for this library

When to use it

Use when a franchisor proposes to terminate because of a remediable breach that is not a ground in s 57 or s 58, and the franchisee does not agree to termination. Do not use for termination without breach (s 56) or for s 57 and s 58 grounds, which have their own processes.

How AI may be used

Lawyer-led. A defective notice can invalidate termination. AI may assemble the particulars from compliance records for the lawyer to settle.

AI may

  • Assemble a dated chronology of the breach from audit reports, correspondence and records, with references
  • Check the notice against the agreement’s notice clause for addressee, address and method
  • Calculate the remedy deadline from the date of the notice

AI must not

  • Must not decide that a breach has occurred or that termination is justified
  • Must not set the remedy steps or the period
  • Must not send the notice

The lawyer checks

  • Breach described precisely with the clause breached and the evidence
  • Remedy steps achievable and the time reasonable (need not exceed 30 days under s 55)
  • Good faith, any insolvency stay and any dispute already notified considered before issue

Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.

Authorities

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