Share on LinkedInShare on LinkedIn

ARTICLE · 26 SEPTEMBER 2019

ACCC grills franchisors for code compliance

McCullough Robertson
Explore more from McCullough Robertson

Inadequate disclosure by franchisors is one of the two most frequent compliance issues reported to the ACCC each year.

AustraliaCorporate/Commercial Law
Belinda Breakspear
Belinda Breakspear
Matthew McMillan
Matthew McMillan
Paul McLachlan
Paul McLachlan
Jake Grant
Jake Grant
Hannah Fas
Hannah Fas
Author LinkedIn connections

First on the menu – food franchisors

Earlier this year we released an update explaining the findings of a Parliamentary inquiry into the operation and effectiveness of the Franchising Code of Conduct (Code).

Continuing the crackdown on inadequate disclosure, a recent round of compliance checks undertaken by the Australian Competition and Consumer Commission (ACCC) on a sample of 12 franchisors in the food services sector has identified widespread non-compliance with the Code.

ACCC marinates on recurrent issues

Inadequate disclosure by franchisors is one of the two most frequent Code issues reported to the ACCC each year. Key issues identified in the ACCC's most recent investigations include:

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Video

Misrepresentation In Commercial Contracts Under Australian Law

Misrepresentation in commercial contracts can expose businesses to significant legal and financial consequences, particularly where inaccurate statements, misleading disclosures, or unrealistic forecasts induce entry into a transaction. Under Australian law, parties may pursue remedies through both common law misrepresentation claims and statutory misleading or deceptive conduct provisions under the Australian Consumer Law, with potential outcomes including rescission, damages, and compensation orders.
AustraliaCorporate/Commercial Law
Stonegate Legal
Stonegate Legal
Article

Force Majeure Clause Risks In Australia Explained

Force majeure clauses in Australian contracts determine whether extraordinary events can suspend, delay, or excuse contractual obligations, but relief depends entirely on precise wording and strict compliance with notice and mitigation requirements. Understanding when businesses can legally invoke force majeure versus when they risk breach of contract claims is critical for managing commercial disruption.
AustraliaCorporate/Commercial Law
Stonegate Legal
Stonegate Legal
Article

Frustration Of Contract Explained: Can You Legally Walk Away?

Frustration of contract is widely misunderstood in Australian law, with many assuming contracts automatically end when circumstances become difficult or expensive. This guide examines the strict legal test applied by Australian courts, explaining when supervening events truly discharge contractual obligations and why financial hardship, increased costs, and commercial difficulties typically fall short of the frustration threshold.
AustraliaCorporate/Commercial Law
Stonegate Legal
Stonegate Legal
Article

What Is The Liability Under A Contractor Agreement In Australia?

A contractor agreement determines who pays when work goes wrong. Independent contractors carry their own commercial risk, unlike employees, so the agreement allocates that risk in detail. Liability commonly arises from breach of contract, intellectual property infringement, and breaches of confidentiality. Indemnities, liability caps and insurance requirements are the three tools that allocate it. Australian law puts limits on that allocation. Consumer guarantees under the Australian Consumer Law apply automatically, and no contract can exclude them.
AustraliaCorporate/Commercial Law
LegalVision
LegalVision
Article

Dividend Payments - Key Issues For Australian Company Directors

Dividends are a common way for companies to distribute value to shareholders, but whether to declare or pay a dividend is not simply a commercial decision. Directors must ensure that any dividend complies with the Corporations Act 2001 (Cth) (Corporations Act), the company’s constitution and relevant governance requirements, while considering their duties to the company and its creditors.
AustraliaCorporate/Commercial Law
Bartier Perry Solicitors
Bartier Perry Solicitors
Article

Shareholder Oppression - Protecting Your Rights As A Shareholder

When you invest your time, money and energy into a company, you expect to be treated fairly and to have your rights as a shareholder respected. But what happens when those rights are ignored, or worse, actively undermined? Shareholder oppression is a serious issue that can have significant financial implications. If you suspect that your rights are being compromised, it’s important to act promptly to protect your interests.
AustraliaCorporate/Commercial Law
Bartier Perry Solicitors
Bartier Perry Solicitors