Franchising in Australia 2016

THE FRANCHISING CODE OF CONDUCT RECENT CHANGES

The new Franchising Code of Conduct commenced on 1 st January, 2015 imposing additional obligations on Franchisors and Franchisees.

The 6 key points to take away are:

1.     The Franchisor must provide a potential Franchisee with a statement outlining the risks and rewards of franchising.

2.     Franchisors must be more transparent with money used for advertising and marketing.

3.     Franchisors must disclose the ability to sell online.

4.     Franchisors cannot simply impose large capital expense on Franchisees.

5.     Franchisors and Franchisees must act in good faith with one another.

6.     The ACCC is empowered to issue infringement notices and seek financial penalties where the new Code has been breached.

                        Australian Franchising