Revisions to the Franchising Code of Conduct include new rules enacted from 1 July. Are you ready?
Franchisors are required to give their prospective franchisees the new key facts sheet and an information statement.
The Australian Competition and Consumer Commission has included the prescribed information on its website.
You can find the key facts sheet along with a link to the information statement that must be given to franchise buyers as soon as possible and before any other essential disclosure documents.
Not sure what’s been included in the Franchising Code revisions? You can read the full amendments here.
There is a raft of changes to take on board, including the seven day cooling off period extended to 14 calendar days for both greenfield purchases and resales; added disclosure required around leasing and any franchisor conflict of interest; and franchisors unable to impose unilateral retro agreement changes unless written consent is given.
The reforms, introduced following a lengthy process of inquiry, taskforce review, and industry consultation, have been welcomed by industry organisations such as the Franchise Council of Australia and Australian Small Business and Family Enterprise Ombudsman.
A 1 July deadline also applies more broadly to superannuation and minimum wage changes across the country.
There will be a 2.5 per cent increase applied to minimum wages. The national minimum wage will increase effective the first full pay period on or after 1 July 2021, as follows:
- $20.33 per hour
- $772.60 per week
There are exceptions to this rolled out change.
With superannuation, the mandatory contributions from an employer to an employee rises from 9.5 per cent to 10 percent on 1 July 2021. This increase affects all employers.
