FRANCHISING CODE OF CONDUCT CHANGES
- EXPERT COMMENT
Franchising Code of Conduct Changes
Federal Business Minister Craig Emerson has announced the Government will amend the Franchising Code of Conduct in its formal response to the 2008 Franchising Code Inquiry.
We welcome Jason Gehrke, Director, Franchisory Advisory Centre, with an initial summary of the changes to the Franchising Code of Conduct.
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Government announces changes to Franchising Code of Conduct
Federal Business Minister Craig Emerson has announced the Government will amend the Franchising Code of Conduct in its formal response to the 2008 Franchising Code Inquiry.
Key changes to the Code and the Trade Practices Act announced today include:
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The introduction of fines and penalties for unconscionable conduct and false and misleading representations;
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Random audits of franchise systems to be conducted by the Australian Competition and Consumer Commission (ACCC);
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Public warnings about rogue franchisors;
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An acknowledgement of good faith in relation to franchise agreements;
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A requirement to clarify end of term arrangements, including mandatory period of notice of renewal;
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Provision to include all affected franchisees of a group to be included in ACCC actions;
- The creation of an expert panel to advise on inappropriate franchising behaviours to be covered by the Code.
Click here to read a summary of each key change, based on or extracted from the information made avialable by the Minister's office.
This initial summary of the changes to the Franchising Code of Conduct has been prepared by Jason Gehrke, Director, Franchise Advisory Centre. It is not offered as legal advice and readers should make their own inquiries as to how the Code changes will impact their current business practices. The Franchise Advisory Centre provides consulting and education programs for potential and existing franchisors and franchisees. For more information, visit www.franchiseadvice.com.au.