Another Franchising Code review...what does it mean for you?

Earlier this year the Australian Government appointed Mr Alan Wein to review the Franchising Code of Conduct (the Code). In his review Mr Wein was asked to make recommendations to ensure that the sector was operating in the best interest of all stakeholders. Over the years the sector and the Code have been through a number of reviews and whilst the review was scheduled, it received a mixed response from the different stakeholders.

In the next few weeks we will outline the 18 recommendations made and the Government's response on those recommendations and what they may mean for you.

Review of the Disclosure Document

Recommendation 1

The Code be amended so that the provision of a notice under clause 20A of the Code, if it states the franchisor's intention to renew a franchise agreement, triggers a requirement to provide disclosure. A franchisee should not be bound by its exercise of an option to renew prior to the provision of disclosure by the franchisor.