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 the DIISR website.
The Parliament of Australia Joint Committee on Corporations and Financial Services has recently resolved to hold an inquiry into the Franchising Code of Conduct and related matters. The deadline for submissions is 12 September 2008 with the Committee to make its report to the Government by 1 December 2008. Information about the terms of reference of the inquiry and how to make a submission can be found on the Committee's 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 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.
