If you're thinking about buying a franchise, it’s important that you understand whether it's right for you before making a final decision or signing a franchise agreement.
The Franchising Code of Conduct is a mandatory industry code across Australia that regulates the conduct of franchising participants towards each other.
Under the Franchising Code of Conduct, parties who enter, or propose to enter, into a franchise agreement must act in good faith towards one another. This means that both current and prospective franchisees and franchisors must act in good faith in their business dealings with each other.
Franchise agreements generally operate for a set period. Some franchise agreements may include a right to renew or extend at the end of this period, but this is not guaranteed.
The ACCC investigates alleged breaches of the Franchising Code or the Competition and Consumer Act 2010 and can take enforcement action where appropriate.
Franchisors who are reviewing and updating their disclosure documents must ensure they comply with the Franchising Code and do not contravene the Australian Consumer Law.
