The ABC will consider possible compensation for franchisees affected by the sudden closure of the broadcaster’s retail network, which includes about 80 franchisee-run ABC centres.

According to Fairfax Media, franchisees received a letter from ABC retail head Regina Hoekstra outlining that the ABC would enter into “negotiations with individual franchisees to assess possible reimbursement under the ABC Centre Licence”.

The franchisees were informed of the ABC’s plans to close its retail network – which also included 50 stores operated by the ABC – at the same time as the media on Thursday morning.

The ABC has not confirmed if the retail centres would continue trading beyond February 2016.

According to Fairfax Media, the broadcaster is looking at a new model that would operate outside the existing distribution model.

The ABC hasn’t confirmed nor finalised when the new model would be finalised.

Commercial director Robert Patterson said it would work with “some pace” to assess potential models for the future of the ABC’s retail outlets.

“We are looking to a new model that is sustainable without the network of 50 ABC shops and the scale which that brings,” Patterson told Fairfax Media.

One franchisee, who did not want to be identified, said he was shocked by the ABC’s decision to terminate his franchise agreement and revealed he would be seeking compensation.

“I’m shattered, especially as I am a relatively new franchisee.

“To establish the fixtures and signwork it was just under $40,000, it’s a lot of money and then there’s the stock,” he said.

According to the 2014 annual report, ABC Commercial contributed about $20 million to the ABC’s net revenue in 2005-06, but this plummeted to $1.5 million in 2013-14.