What Actions Are Available To Franchisees If A Franchisor Engages In Fraudulent Or Deceptive Practices?

Franchise Business.com.au:

If the franchisor engages in fraudulent or deceptive practices, the franchisee may seek remedies under the Trade Practices Act (TPA), under the prohibition of misleading and deceptive conduct, and at common law on grounds of misrepresentation.

If a breach of the TPA is involved, franchisees may also seek the intervention of the Australian Competition and Consumer Commission (ACCC). At common law, a right to terminate the franchise agreement may exist where the party has entered into the franchise agreement, induced by a false representation. As a practical matter, the affected party must act quickly otherwise it may be argued that the affected party has affirmed the franchise agreement and the right to terminate may be lost.