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ARTICLE · 27 DECEMBER 2023

A highly anticipated judgement and possible reforms: key developments in franchising in 2023

Corrs Chambers Westgarth
Corrs Chambers Westgarth
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Corrs Chambers Westgarth

Corrs Chambers Westgarth

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Outlines ACCC's proposals regarding franchises, discusses takeaways from recent case & considers relevant changes to workplace laws.

AustraliaCorporate/Commercial Law
Frances Wheelahan
Frances Wheelahan
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It has been another busy year for the franchise sector. In August 2023, Mercedes-Benz Australia/Pacific Pty Ltd was successful in a Federal Court case brought by 38 of its Australian dealers. These dealers challenged the carmaker's decision to not renew their dealer agreements and to implement an agency model, seeking A$650 million in compensation.

The Federal Court's decision came shortly after the Federal Government announced an independent review of the Franchising Code of Conduct (the Code). In its response to the review, the Australian Competition and Consumer Commission (ACCC) proposed significant change to the regulation of the sector, including supporting the replacement of the Code with a licencing regime.

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