The Franchise Council of Australia (FCA) is seeking input from
franchise systems to enable it to effectively contribute to the
review of the Franchising Code of Conduct flagged for 2013.
The FCA is keen to ensure that the Code review is thorough, and
any changes to the Code improve the regulatory framework and do not
impose an unreasonable compliance burden.
The Norton Rose Australia franchising team is compiling a
comprehensive submission to supplement the FCA's official
submission. Our submission will focus on drafting and
interpretative changes that will reduce compliance costs, and make
disclosure more meaningful. To date we have identified the
following key areas for improvement:
exemption for foreign franchise systems from the requirement to
annually update a disclosure document where the foreign franchise
system has only granted a single franchise in Australia
clarification of the disclosure obligations concerning master
franchising and multi-level franchise systems so that there is no
obligation to provide multiple disclosure documents, but the nature
of the master franchise or multi-level arrangements must be fully
explained in the disclosure document provided by the entity making
disclosure to the franchisee
clarification of the disclosure process so that the requirement
to make double disclosure is avoided
exemptions from providing a disclosure document and complying
with Code disclosure processes and time periods where the
franchisee is an existing franchisee or a sophisticated investor
and consents in writing to the exemption.
If you would like to contribute to the submission or have any
comments on Code compliance generally please contact Stephen
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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