FRANCHISING CODE OF CONDUCT
Greyson Legal | Franchise Lawyers have a sound understanding of the Franchising Code of Conduct and its application.
If you require assistance:
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understanding the Franchising Code of Conduct
how the Code applies to you; or
because the Franchisor may have breached the Franchising Code of Conduct,
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give us a call to see how we can help you.
Is the Franchising Code of Conduct mandatory?
Yes, the Code is a mandatory industry code prescribed under section 51AD of the Competition and Consumer Act 2010 (CCA) and regulates the conduct of Franchisors and Franchisees.​
How does the Franchising Code of Conduct regulate?
The Code regulates in a number of ways, such as:
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disclosure obligations
requirement for certain minimum provisions within a Franchise Agreement
provides a dispute resolution procedure
incorporates a cooling off period
requirement for Franchisors and Franchisees to act in good faith.
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The Australian Securities & Investments Commission (ACCC) oversees compliance with the Franchising Code or Conduct and investigates alleged breaches.
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The ACCC has a range of compliance and enforcement tools at its disposal to ensure compliance with the Code, such as:
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the party in breach agreeing to certain remedial action and/or compensate affected parties
obtaining court enforceable undertakings
issuing of infringement notices
imposing fines and penalties
commencing court proceedings
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For example, in the matter of Back In Motion Physiotherapy Pty Ltd certain restraint of trade terms in its Franchise Agreements were deemed unfair. The company agreed to provide a court enforceable undertaking, for instance, not to include such terms in its future Franchise Agreements.. Read more here.​