Jurisdiction for settling disputes
(1) A franchise agreement may contain a clause that:
(a) if a party to the agreement wishes to bring an action or proceedings in relation to a dispute under the agreement, requires the party to bring the action or proceedings in a State or Territory in which the franchised business is based; or
(b) if a party to the agreement wishes to refer a dispute under the agreement to mediation, requires the mediation to be conducted in a State or Territory in which the franchised business is based.
(2) A franchise agreement must not contain a clause that:
(a) requires a party to the agreement to bring an action or proceedings in relation to a dispute under the agreement:
(i) in any State or Territory outside that in which the franchised business is based; or
(ii) in any jurisdiction outside Australia; or
(b) requires the mediation of a dispute under the agreement to be conducted:
(i) in any other State or Territory outside that in which the franchised business is based; or
(ii) in any jurisdiction outside Australia.
Note: See subclauses 3(4) and (5).
(3) If a franchise agreement contains a clause in contravention of subclause (2), the clause is of no effect.
22 Costs of settling disputes
A franchise agreement must not contain a clause that requires the franchisee to pay to the franchisor costs incurred by the franchisor in relation to settling a dispute under the agreement, and if it does, the clause is of no effect.
Note: See subclauses 3(4) and (5).