Without much fanfare last week Australia's new, but long
awaited, Franchising Code of Conduct was published. Since it is to
take effect on 1 January 2015, Australian franchise systems need to
work fast to make sure that their documents and processes are in
order before the new year.
The current code will be repealed on 31 December 2014 and the
new Code will apply to both new and existing franchise
agreements.
There are a few transitional exceptions for some provisions of
the new Code so that some of the franchise agreement clauses
prohibited by the new Code will continue to be effective in current
franchise agreements (or at least until those agreements are
transferred or varied). Provisions which require disputes to be
heard in another state or territory to where the franchisee's
business is located or which allow the franchisor to recover costs
of settling a dispute from a franchisee will be prohibited and void
in any new franchise agreements. However these
