Changes to the Franchising Code – What you need to know

The Australian Government recently released amendments to the Franchising Code of Conduct (Franchising Code). These changes have arisen as a result of the Parliamentary Inquiry into the franchising sector, the subsequent Parliamentary Joint Committee's Fairness in Franchising Report, and consultation on the resulting exposure draft legislation. The aim of the amendments is to promote competition and fair trading in the franchising sector. While the final amendments have been much anticipated, there have been some changes from the exposure draft legislation, particularly with respect to penalties (which are no longer doubling to $133,200) and supplier rebate and financial benefit disclosure (which are no longer extended to non-pecuniary benefits).