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ARTICLE · 10 APRIL 2014

Australia's Franchising Code will be reformed - what businesses should expect

Clayton Utz
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The Government has released for public consultation draft amendments to strengthen the Franchising Code of Conduct.

AustraliaCorporate/Commercial Law
Adrian Kuti
Adrian Kuti
Aman Saxena
Aman Saxena
Lauren Grbich
Lauren Grbich
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Key Points:

The Government has released for public consultation draft amendments to the Franchising Code of Conduct, seeking to strengthen the effectiveness of the Code and its enforcement by the ACCC.

On 2 April 2014, the Government published its "Future of Franchising" statement in response to the recommendations of the independent review of franchising laws led by Alan Wein in July last year. As part of that response, the Government also announced a suite of exposure draft legislation to give effect to its proposed reforms.

The draft legislation proposes some significant changes to the framework for franchising laws in Australia, including the introduction of pecuniary penalties for breaches of the Franchising Code, amended information disclosure requirements and a new express obligation on franchisors to act in good faith.

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