What if you don't comply?

If you fail to comply with the Franchising Code (the code) you are in breach of s. 51AD of the Competition and Consumer Act 2010 (the Act).

Legal action by the ACCC or other affected parties

We can institute legal proceedings against you if you breach the code and/or the Act.

In addition, the Act also makes provision for other affected parties to take legal action for a breach of the code and/or the Act.

Remedies and penalties

The Act provides for a number of sanctions and orders including:

• injunctions to stop the conduct
• compensation and damages
• setting aside or varying relevant contracts
• orders for corrective advertising.

Commercial consequences of a breach

If you are found to be in breach of the code and the Act you may also face a number of commercial consequences—for example, poor publicity may have a detrimental effect on your company’s or your own business.

What should I do if I believe I am in breach of the Franchising Code?

If you believe you may be in breach of the code, you should:

• immediately stop the activity
• seek advice on whether you are in breach of the Act
• attempt to resolve any disputes
• provide a remedy to the affected parties
• review how the breach came about
• put in place an effective compliance program to avoid future recurrences.