You are required to comply with the code if you are a party to a franchise agreement.
A 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 associated with a trade mark, advertising or commercial symbol.
The code has numerous requirements you must comply with, these requirements include a duty to:
- Act in good faith (for example, honestly and with an intention to engage in fair dealing)
- Provide a disclosure document (the franchisor must provide prospective franchisees a document detailing key information regarding the franchise)
- Attend mediation before commencing court action
- Provide reasonable written notice of proposed termination for a breach of contract.
Please 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)
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