Franchising Code of Conduct

Buying a franchise

The Franchising Code of Conduct is a mandatory code applied to all business arrangements that fall under the code´s definition of a franchise. You will need to get a copy of the code if you are buying a franchise business.

The franchising code covers 3 key areas:

• The code requires a franchisor to provide a disclosure document to prospective franchisees to help them make reasonable and informed decisions about buying a franchise.
• The code requires a franchisor to provide a franchisee with certain rights in relation to franchise agreements.
• The code includes dispute resolution procedures for franchise agreements entered into on or after 1 October 1998.

The Australian Competition and Consumer Commission (ACCC) is responsible for enforcing the code. Copies of the code and the franchisee's manual can be obtained from the ACCC.

Related links

• See franchising industry associations.