Franchising Code of Conduct
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 franchisor must provide you with the following:
- the franchise code of practice
- the franchise agreement
- the disclosure document
- the lease agreement for the premises (if applicable).
The franchising code covers 3 key areas:
- It requires a franchisor to provide a disclosure document to prospective franchisees to help them make reasonable and informed decisions about buying a franchise.
- It requires a franchisor to provide a franchisee with certain rights in relation to franchise agreements.
- It 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.