Memo · Franchising & Distribution

Responsible franchisor exposure note for a franchisee contravention

Working note of the elements in section 558B(1) of the Fair Work Act 2009 (Cth) when a franchisee employer is said to have contravened a listed civil remedy provision.

Kind
Memo. An internal or advice memo.
Where it applies
Commonwealth
AI use
Yellow You and the tool draft together, with you directing. You check every statement you rely on.
Law stated as at
22 October 2026
Status
Maintained. Checked on 22 October 2026 against the authority it cites, for Commonwealth.
Version
1
Source
Written for this library

When to use it

Use when assessing a franchisor's exposure for a franchisee's contravention of a civil remedy provision listed in section 558B(7), before any advice is given that the franchisor is or is not liable.

Used for these tasks

Each task page says how far AI may help with the task and what the lawyer must review.

How AI may be used

The tool lists the section 558B(1) elements and the reasonable-steps factors against facts the lawyer supplies, and the lawyer decides whether each element is capable of being made out.

AI may

  • Name the franchisee, the provision in section 558B(7) the lawyer nominates, and the dates of the alleged contravention.
  • List the reasonable-steps matters in section 558B(4)(a) to (f) and the documents the lawyer supplies under each.
  • Record that section 558B(6) says the reference to a contravention includes a contravention whether or not an order has been sought or made against the franchisee.

AI must not

  • Do not conclude that the person is a responsible franchisor entity. That definition is in section 12 and was not opened.
  • Do not conclude that reasonable steps were, or were not, taken.
  • Do not choose which civil remedy provision an underpayment contravenes.

The lawyer checks

  • Read the definition of responsible franchisor entity, franchisee entity and franchise in section 12 before using those terms as conclusions.
  • Section 558B(2) is the holding-company pathway. It was read and is not worked in this note unless the lawyer marks it as in issue.
  • Section 558B(7) ends at employer obligations about pay slips. Later paragraphs, if any were added after the text that was read, were not seen. The opened text stopped at paragraph (o).

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

Authorities

Read the full text

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