required to comply with the code if you are party to a franchise agreement.
franchise agreement is an agreement in which a person (the franchisor) grants
to another (the franchisee) the right to carry on the business of offering,
supplying or distributing goods or services under a particular system or
marketing plan which is substantially determined, controlled or suggested by
the franchisor and is associated with a trade mark, advertising or commercial
has numerous requirements, including:
an obligation to act in good
faith in dealings with one another (for example, honestly and with an
intention to engage in fair dealing)
- to provide prospective
franchisees with a generic information sheet outlining the risks and
rewards of franchising
- to provide prospective franchisees
with a disclosure document detailing key information about the franchise
system and the running of the franchise
- to provide greater transparency
in the use of and accounting for money used for marketing and advertising
and to set up a separate fund for marketing and advertising fees
- additional disclosure about
the ability of the franchisor and a franchisee to sell online
- a prohibition on franchisors
from imposing significant capital expenditure except in limited
- to provide reasonable
written notice of proposed termination of the franchise agreement.
also implements financial penalties and infringement notices for serious
breaches of the code.
consult the Contact Officer for more information and to ascertain the level of
compliance that may be required.
Code of Practice
A code of practice can be either a legal requirement or non-legal requirement. Legal codes of practice are defined as a result of legislation. Non-legal codes of practice are defined by industry regulators and bodies.
Australian Competition and Consumer Commission
Enforcement and Compliance Executive
Competition and Consumer Act 2010 (Australian Government)
Trade Practices (Industry Codes - Franchising) Regulations 2014 (Australian Government)
The information contained on the Australian Business Licence and Information Service
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To the full extent permitted by law, the Federal, State, Territory and Local Governments
make no representations or warranties (expressed or implied) in relation to the
information, including its accuracy, currency or completeness.
The business information provided does not constitute professional or legal advice,
nor is the use of any third party resource an endorsement of the information contained,
the associated organisation, product or service. It is recommended that you obtain
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provided here is relevant to your particular circumstances.
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