It’s only a few weeks until the current Franchising Code of Conduct will be repealed and replaced with a new Code (1 January 2015).
This new legislation will apply to all franchise systems operating in Australia. And while many provisions of the current Code will remain, some of the changes the new regulations will bring include:
- introducing an obligation for parties to act in good faith in their dealings with one another
- introducing financial penalties and infringement notices for serious breaches of the Code
- requiring franchisors to provide prospective franchisees with a short information sheet outlining the risks and rewards of franchising
- requiring franchisors to provide greater transparency in the use of, and accounting for, marketing funds
The new Franchising Code and the Minister’s explanatory statement, which helps explain how the Code is intended to operate, are available on the Comlaw website.
Franchisors, franchisees and professional advisers can attend a free webinar held by the Australian Competition and Consumer Commission: The new Franchising Code: what you need to know and do now
The webinar will provide an overview of the main provisions of the new Franchising Code, implications for franchisors and franchisees, and information on how the ACCC will enforce it. Mark the date in your diary now and register for the event to stay on top of the changes.
Tuesday 9 December, 12 – 1pm AEDT