Case Studies

Advising NRMA on international master franchise agreement

• 13 July 2023 • 1 min read
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For the NRMA, the addition of electric cars is a step towards electrifying half its nationwide rental fleet within five years to support the nation’s net-zero emissions target.

Case Study - Consumer Markets - NRMA Maddocks

Maddocks has successfully acted for NRMA, the largest national automobile club and one of Australia’s leading car rental companies, to negotiate an international master franchise agreement with, German-based company Sixt. Originally known as a vehicle rental service, Sixt has broadened its offerings to include car sharing, ride hailing and car subscriptions.

The project included negotiations with the Sixt legal and commercial teams, drafting the Australian sub-franchise documents and conversion agreements, and advising on all aspects of competition and regulatory law which included advice on pricing and cartel conduct and exclusive dealing.

We also assisted with negotiations and a mediation with the franchisee representative council and individual franchisees who were alleging breach of the Competition and Consumer Act in relation to good faith under the Franchising Code of Conduct and unconscionable conduct.

The start of the partnership between Sixt and the NRMA coincides with the initial integration of 40 MG EV and 25 Tesla Model 3 vehicles, making it one of the largest electric vehicle fleets for hire in Australia today. For the NRMA, the addition of electric cars is a step towards electrifying half its nationwide rental fleet within five years to support the nation’s net-zero emissions target.

The Maddocks team includes Greg Hipwell, Shaun Temby and Mira Martin.

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