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.