Franchising

Franchising Update – Franchisor Information Statement

The Government has recently made changes to the franchising rules. The most important update for Franchisor’s to be aware of is that concerning updated the Information Statement for Prospective Franchisees. In particular, Franchisors must now give the updated Information Statement to anyone interested in becoming a franchisee: No later than 7 days after they express […]

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Changes to the Code of Conduct

Introduction As set out in our February 2021 Update, the Government has amended the Franchising Code of Conduct. Background In November 2020, an exposure draft of the new Code was issued and feedback and consultation.  The amendments arose from the Government’s enquiry into “Fairness In Franchising” and subsequent report and recommendations (August 2020). The original

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Franchising- Proposed Changes to the Code of Conduct

The Government has indicated that they propose to amend the Franchising Code of Conduct.  In November 2020, an exposure draft of the new Code was issued and feedback and consultation is underway.  The amendments arise from the Government’s enquiry into “Fairness In Franchising” and subsequent report and recommendations (August 2020). The original report identified examples

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Franchising Update Disclosure Obligations 2019

Introduction Anyone who has a passing interest in franchising will know that the Franchise Sector is under scrutiny.  This article focuses on three issues where the Disclosure Obligations of Franchisor’s have been under the spotlight. Fairness in Franchising – Marketing Fund Review The recent parliamentary inquiry in to franchising “Fairness In Franchising” disclosed 31% of

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Franchising Update: Jump Swim School, The ACCC and Freezing Orders. What Now?

Introduction All Jump! Swim School franchisee need to be aware of the recent Federal Court decision involving the Jump! Swim School (Australian Competition and Consumer Commission v Campbell [2019] FCA 886 (7 June 2019)  at http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/FCA//2019/886.html). Freezing Orders Justice O’Bryan has made orders freezing the assets of various entities involved in Jump! Swim School (called

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Franchising Update – Marketing Funds When the Franchisor Goes Bust

Introduction Most Franchise systems require a Franchisee to pay a variety of fees. In addition to the Initial Franchise Fee and on-going royalties it is usual for a Franchisee to be required to pay a Marketing Levy or Marketing Fee. The Marketing Levy varies from a fixed amount to a levy based upon a percentage

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Do you know the latest in franchising? The Operation & Effectiveness of the Franchising Code of Conduct Report

The Operation & Effectiveness of the Franchising Code of Conduct Report Introduction The Parliamentary Joint Committee on Corporations and Financial Services has released their report entitled “The operation and effectiveness of the Franchising Code of Conduct” on 14 March 2019.  The Report is lengthy (369 pages) and makes a series of recommendations. The recommendations in

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Unfair Contract Terms – Small Business & Franchise Agreements

Under the Australian Consumer Laws (the “ACL”) there are laws prohibiting unfair contract terms in consumer contracts.  From November 2016, the unfair contract regime will now extend to small business contracts. A “small business contract” is where the contract has the following features: The amount payable under the contract is less than upfront $300,000 or $1,000,000

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