Battling KFC franchisor Yum! Restaurants Australia and franchisee Jack Cowin of Competitive Foods have moved to mediation and the 15 stores threatened with closure have been given a lifeline until September.

Yum! and Competitive Foods are fighting over the franchisor’s non-renewal of the long term franchise agreements and Cowin recently accused Yum! of unconscionable conduct in the matter.

Both parties agreed on an early hearing of the full case in September.

After the latest bout a spokesperson for Yum! Restaurants Australia said the company welcomed the opportunity to have the Competitive claims heard in court as soon as possible.

At Competitive Foods a spokesperson told Franchising magazine compulsory mediation is something we’ve been asking for for some time.

Stores remain open, and we’re happy with the outcome. We’re hoping cool heads will prevail and there will be a suitable commercial outcome.