From 1 January 2015, franchisors and franchisees are required to comply with a new Franchising Code of Conduct. The Code applies to conduct occurring on or after 1 January 2015 in relation to all franchise agreements entered into, transferred, renewed or extended on or after 1 October 1998.
Franchise agreements don't always last their full term - they can get cut sort for a number of reasons.
The Franchising Code provides mechanisms for parties to a franchise agreement to try and resolve disputes in a timely and cost effective manner.
The ACCC investigates alleged breaches of the Franchising Code or the Competition and Consumer Act 2010 and can take enforcement action where appropriate.
The ACCC can ask a corporation for information or documents it is required to keep, generate or publish under a prescribed industry code (i.e. the Franchising Code, Horticulture Code, Oilcode, Unit Pricing Code and Wheat Port Code). The corporation has 21 days to provide these documents.
The ACCC regulates the Franchising Code of Conduct, which is a mandatory industry code that applies to the parties to a franchise agreement.