From 1 January 2015, the current Franchising Code of Conduct will be repealed and replaced with a new Code. This will apply to all franchise systems operating in Australia. Whilst the Code will remain largely the same, some of the changes the new Franchising Code will bring include:
- introducing an obligation for parties to act in good faith in their dealings with one another
- introducing financial penalties and infringement notices for serious breaches of the Code
- requiring franchisors to provide prospective franchisees with a short information sheet outlining the risks and rewards of franchising
- requiring franchisors to provide greater transparency in the use of, and accounting for, marketing funds.
The ACCC is holding a free webinar, which will provide an overview of the main provisions of the new Franchising Code, implications for franchisors and franchisees, and how the ACCC will enforce it. Franchisors, franchisees and professional advisers are encouraged to attend and ask any questions they may have.
Date: Tuesday 9 December 2014
Time: 12.00pm–1.00pm AEDT
Register by clicking here.
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.