The Franchising Code of Conduct is a mandatory industry code of conduct that has the force of law under the Trade Practices Act 1974.
The Department of Innovation, Industry, Science and Research assists the Australian Government to develop the law on franchising matters. Further information on DIISR’s role is available on its website.
Last year, the federal Parliamentary Joint Committee on Corporations and Financial Services resolved to hold an inquiry into the Franchising Code of Conduct and related matters. The committee's report, including the terms of reference of the inquiry, is available on its website. The ACCC submission to the inquiry is listed on the committee's website as submission no. 60.
On 21 June 2009 the government released an options paper to seek written comment on possible amendments to the Franchising Code of Conduct discussed in the committee’s report. The closing date for written comments is 10 July 2009. The media release about the options paper is available on the website of the Minister for Innovation, Industry, Science and Research, and the options paper and information on submitting comments is available on the DIISR website.
Purpose
The code aims to regulate the conduct of participants in franchising towards each other and to ensure that they are sufficiently informed about a franchise before entering into it. The code also provides a cost-effective dispute resolution scheme for franchisees and franchisors to resolve any disputes.
Role of the ACCC
Our role is to promote compliance with the code by helping people to understand their rights and obligations under the code and the Act. We do this by developing educational material such as guidelines, articles and fact sheets as well as by giving presentations through our outreach programs in each state and territory.
We are also responsible for investigating complaints and, where necessary, taking enforcement action against anyone who fails to comply with the code.
