The Franchising Code of Conduct (Code) was
introduced in 1998. Since that time, the Code has been reviewed and
amended several times. The most recent of these amendments were in
2008 following a federal enquiry and then in 2010.
The 2008 amendments were designed to improve disclosure between
franchisors and franchisees (including prospective franchisees).
The 2010 amendments focused on end-of-term arrangements, disclosure
of additional information by franchisors, dispute resolution and
good faith. Additional powers were also granted to the Australian
Competition and Consumer Commission in 2010, including the right to
audit business for compliance with the Code.
The 2013 Review
This current review will focus on all aspects of the Code.
However, there will be a particular focus on the amendments made to
the Code in 2008 and 2010, with consideration paid to whether those
amendments are working as intended.
The review will also in particular consider the following
questions of good faith in franchising;
end of term arrangements for franchisees;
dispute resolution; and
the operation of the Competition and Consumer Act with
respect to enforcement of the Code.
The review will be conducted by franchising industry expert and
lawyer Alan Wein. Mr Wein has been requested to prepare a report
containing the findings of the review within three months.
The franchising industry is encouraged to make submissions to
the review. A discussion paper "
Review of the Franchising Code of Conduct" has been
developed to assist with the preparation of submissions to the
The closing date for submissions is 15 February 2013. The FCA
(Franchise Council of Australia) is making submissions on behalf of
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.Madgwicks is a member
of Meritas, one of the world's largest law firm
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