Reforms to Franchising Conduct and Unconscionable Conduct

By The Franchising Team

Introduction

Today, 3 March 2010, the Australian Federal Government announced further reforms to the Franchising Code of Conduct (Code) and the Trade Practices Act 1974 (Cth) (Act). The Minister for Small Business, Independent Contractors and the Service Economy, the Honourable Dr Craig Emerson, addressing a franchising forum in Sydney, released the expert's report Strengthening Statutory Unconscionable Conduct and the Franchising Code of Conduct and advised of the Government's support for the panel's findings.

Summary

The major amendments are:

In relation to the Code

1. The following behaviours would continue to be permitted subject to the additional disclosure and comments described in paragraph two below:
   • unilateral variation of franchise agreement;