Franchising code of conduct

Buying a franchise can be an exciting and rewarding experience, however, there are some things you need to know about your rights and obligations under the Franchising Code of Conduct.

Franchising Code

The Franchising Code of Conduct is a mandatory industry code across Australia that regulates the conduct of franchising participants towards each other.

Franchising agreements

Buying a franchise can be an exciting experience. However, before you commit to a franchise opportunity, it’s important that you understand your rights and obligations under the Code.

Acting in good faith

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.

Resolving franchising disputes

The Code provides mechanisms for parties to a franchise agreement to try and resolve disputes in a timely and cost effective manner.

End of franchise agreements

Franchise agreements generally operate for a set period. However, a franchise agreement may come to an end early for a number of reasons.

Franchising penalties & infringements

Franchisees and franchisors risk financial penalties and infringement notices if they breach certain provisions of the Franchising Code.