If Departmental activity, debate in Parliament and media articles are an indication, the Federal Government's much awaited response to the Ripoll Report is imminent.
All indications are that the Government intends to take a pragmatic approach to the recommendations, with the focus being on Code amendments to provide enhanced disclosure in the areas of insolvency and end of term. So franchisors will have to inform, or draw the attention of franchisees to, the possible consequences if the franchisor becomes insolvent. It is likely that there will need to be express disclosure of what happens at the end of the franchise term, and possibly a mandatory review meeting or notice period 12 months before the end of term.
The controversial recommendations concerning franchisor registration and the introduction of a statutory good faith obligation seem unlikely to be adopted. Instead a further review of the unconscionable conduct provisions may be proposed.
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