Posted by Elizabeth Gore-Jones
on 13 December 2016
Does your franchise agreement (or any commercial agreement for that matter) have an automatic renewal provision?
If you answered yes, then you may find yourself in the sights of the ACCC!
Last year the ACCC were successful in their action against Chrisco Hampers Australia Pty Limited where automatic renewal terms were held to be unfair.
It seems people were not keen to receive their Christmas hampers year after year.
These laws now apply to standard form business-to-business contracts.
It seems like as good a time as any to review your renewal clauses to help to avoid triggering unfair renewal terms.
Disclaimer: This information is not to be relied upon as legal advice. You should seek your own legal advice for your circumstances. The Franchise & Business Lawyers can advise you with respect to your standard form contracts.
Author:Elizabeth Gore-JonesAbout: Elizabeth specialises in franchising law. She lectures at Bond University PLA in franchising, she sits on the Queensland Law Society Franchising Committee, she is a past member of the Women in Franchising committee and a past member of the Franchise Council of Australia.
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