What is the Content of the Common Law Obligation of Good Faith in Commercial Franchises?

This article examines how lower courts in Australia have given content to the implied common law obligation of good faith in contractual performance and enforcement in the context of franchise relationships. Specifically, observations are made concerning the impact of the implied obligation on commercial franchisors. While commercial franchisors are not obliged to put aside self-interest, it will be demonstrated that due regard must be paid to the reasonable expectations engendered by the franchise relationship to avoid allegations of acting in a manner contrary to the implied obligation. Finally, it is suggested that the conclusions reached in the franchise context are consistent with the more general trend of recent Australian lower court authority, namely, that the content of the implied good faith obligation is increasingly likely to be based on the reasonable expectations or legitimate interests of the contractual parties