Dynamic Business Logo
Home Button
Bookmark Button


New Franchising Code of Conduct laws apply from *today*

A new Franchising Code of Conduct will be enforceable under law today, with franchisors forced to comply with new franchising laws by the ACCC.

Franchising Code of ConductUnder the changes, new regulations will be imposed upon franchisors ensuring greater disclosure, transparency and mediation in their relationship with franchisees.

Beyond this, franchisors will be required to make perfectly clear the future capital expenditure obligations of franchisees, as well as if their are requirements to pay a franchisor’s legal costs.

ACCC Chairman Graeme Samuel that franchisors must now give a minimum of six months notice if a franchise agreement is going to be terminated. This is of particular importance as many franchisees are unaware that agreements are not necessarily ongoing.

To help both franchisors and franchisees become informed about the changes, the ACCC has developed a new fact sheet and a DVD outlining the new law.

The new changes build upon other new services designed to help prospective franchisees ensure they make informed decisions.

One such service is a free online education program, administered by Griffith University’s Asia-Pacific Centre for Franchising Excellence. The program is built around advising prospective franchisees on how to decide what is best for them.

“The ACCC takes seriously its role in educating Australians about the Trade Practices Act and related laws.” Mr Samuel said.

“These new information products are part of the ACCC’s ongoing efforts to ensure that businesses and consumers understand their rights and obligations under the act.”