Frequently asked questions
Does the code apply to me?
1. Do I have a franchise agreement (or is it a licence or distributorship)?
2. Are there any franchise agreements to which the code doesn’t apply?
3. Does the Franchising Code apply to overseas franchisors?
Disclosure
4. When is a franchisor required to provide a disclosure document (and to whom)?
5. Under the code, a franchisor must give a prospective franchisee a 'current' disclosure document. What does 'current' mean?
6. Does a prospective franchisee have to make a non-refundable payment to the franchisor in order to receive a disclosure document?
7. What should a franchisee do if they were not given a disclosure document before they entered into the franchise agreement?
8. What kind of information is in a disclosure document?
10. What if the information in a disclosure document is misleading?
11. Do franchisees have a right to view the financial statements of marketing funds they contribute to?
Things to consider before you buy a franchise
12. What steps should I take before I sign?
13. Should a franchisee get professional advice before entering into a franchise agreement?
14. Can the ACCC give advice on whether to purchase a particular franchise?
15. What are some warning signs of a scam franchise?
16. Can a franchise agreement contain a clause that releases a franchisor from liability for any misrepresentations to the franchisee?
17. What happens when the term of a franchise agreement ends?
18. What if the franchisor becomes insolvent (fails)?
Termination/transfer
19. Does the franchisee have a cooling-off period after entering into the franchise agreement?
20. Does a franchisee need the franchisor’s consent to transfer a franchise?
21. What if the franchisee wants to terminate their franchise agreement before it expires?
22. What if the franchisor wants to terminate the franchise agreement before it expires?
Dispute resolution
23. How can parties resolve disputes about franchising agreements?
25. Who pays the cost of mediation?
24. What is the Office of the Franchising Mediation Adviser?
26. Once a matter is set down for mediation, do both parties have to attend?
27. What else can a party do if there is a dispute about a franchising agreement?
28. My franchise agreement has been terminated. Can I require the other party to attend mediation?
Other CCA issues
29. Does the Competition and Consumer Act apply to franchises?
30. Are franchises allowed to fix prices?
31. Can a franchisor force a franchisee to purchase goods or services from a specific source?
32. What is unconscionable conduct?
33. What is ‘churning’?
34. What happens if a party does not comply with the Franchising Code of Conduct or the Competition and Consumer Act?
35. When will the ACCC take action against a franchisor?
36. Can a franchisor set a minimum price for the sale of goods or services?