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 2 April 2014, the Minister for Small Business, the Hon Bruce Billson MP, released the ‘Future of Franchising’ statement, which outlines the Government’s franchising policy reforms. The changes are expected to take effect from 1 January 2015. Further information on the proposed reforms is available on the Treasury 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 investigations for information on the remedies, investigation process and actions taken by the ACCC.
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.