On 1 July 2010 the Trade Practices (Industry Codes
– Franchising) Amendment Regulations 2010 commenced,
giving effect to the Franchising Code reforms. A summary of the
amendments to the franchising code which took effect from 1 July
2010 were outlined in our June 2010 update, which you can view
The Australian Competition Consumer Commission recently released
a number of publications to assist franchisors and franchisees to
understand their obligations under the Franchising Code of Conduct.
The ACCC published the following:
Franchising Code of Conduct compliance manual for franchisors
and master franchisees
Franchisee start up checklist
Being smart about your new franchise: checklist before signing
a lease agreement.
The publications are a useful starting point for franchisors and
franchisees looking for general guidance on their responsibilities,
obligations, and disclosure requirements under the Franchising
Code. However, as highlighted throughout, the publications provide
a general overview only and are not a substitute for legal
The publications can be accessed here,
and we highlight the features of each publication below.
The Franchising Code of Conduct compliance manual for
franchisors and master franchisees is designed for
franchisors and master franchisees to provide guidance on the
franchising code including:
disclosure requirements relating to franchise agreements;
conditions relating to franchise agreements;
the dispute procedure;
compliance and other obligations; and
hints for developing a compliance strategy.
Gadens Lawyers can assist franchisors and
master franchisees to review their disclosure documents including
franchising agreements to ensure compliance with the Franchising
The Franchisee manual is a useful starting
point for franchisees and prospective franchisees covering:
relevant considerations and warnings before choosing a
useful due diligence steps for research and verification;
disclosure requirements; and
the franchise agreement.
The publication Being smart about your new franchise:
checklist before signing a lease agreement provides
guidance to franchisees starting a small business. The checklist
covers important considerations for franchisees including:
ensuring that the contractual arrangement is suitable and is
end of term arrangements;
occupancy costs; and
The Franchisee start up checklist provides a
useful checklist for franchisees or prospective franchisees to make
an informed decision before entering into a franchise. It includes
items such as:
a franchisee's rights to receive disclosure documents;
suitability of the franchise;
due diligence relevant to a franchisee before entering into a
Gadens Lawyers is able to assist franchisees
and prospective franchisees to understand their rights under the
Franchising Code of Conduct.
In some cases these fees or surcharges are higher than what a bank charges to these merchants for use of the system.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).