If you’re involved in franchising, changes to the Franchising Code of Conduct come in to play from 1 January 2015.
The new Franchising Code contains a few key changes:
- Requires franchisees and franchisors to act in good faith when dealing with each other
- Introducing new fines and penalties for not complying with some areas of the Franchising Code
- Introducing improved transparency of marketing budgets
- Introducing simplified disclosure requirements
Ensuring your current agreements are compliant under the revised Franchising Code is important to keep in mind after 1st January 2015. The Australian Competition & Consumer Commission (ACCC) has released a Franchisor Compliance Manual, which we urge you to download and review.
Although transition provisions under the new code will allow franchisors to continue to use disclosure documents updated under the current code until at October 31 next year (for franchisors with a June 30 financial year), most franchisors will find it necessary to update their disclosure documents – and most likely their franchise agreements – as soon as possible.
For further information please contact an Azure Group Advisor at ourteam@azuregroup.com.au
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