Franchising code of conduct
The ACCC regulates the Franchising Code of Conduct, which is a mandatory industry code that applies to the parties to a franchise agreement.
The Franchising code of conduct is available from the ComLaw website.
The Franchising Code requires franchisors to provide prospective franchisees with the following documents at least 14 days before they sign an agreement or hand over non-refundable money:
- a disclosure document (sets out key information about the franchise that the prospective franchisee may not otherwise be able to obtain)
- a copy of the franchise agreement in its final form
- a copy of the Franchising Code.
On 4 January 2013 the Minister for Small Business, the Hon Brendan O’Connor, announced the commencement of a review of the Franchising Code to be conducted by Mr Alan Wein. Details of the 2013 review and the ACCC's submission are available on the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education website.
The ACCC investigates alleged breaches of the Franchising Code or the Competition and Consumer Act 2010 and can take enforcement action where appropriate. This role does not extend to the investigation of disputes where there is only a contractual issue involved. See franchising code investigations for information on the remedies, investigation process and actions taken by the ACCC.
The following publications may be of interest:
- Franchising Code of Conduct compliance manual for franchisors and master franchisees
- The franchisee manual
- Franchising publications
The ACCC offers a free subscription service for those people who wish to be kept up-to-date with developments on the Franchising Code from the ACCC.