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ARTICLE · 12 JUNE 2021

Franchise Code reforms: balancing rights and obligations between franchisors and franchisees

Corrs Chambers Westgarth
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The reforms give franchisees a right to more information and remedies for dispute resolution, disclosure and termination.

AustraliaCorporate/Commercial Law
Frances Wheelahan
Frances Wheelahan
Tamara Moretto
Tamara Moretto
James Cameron
James Cameron
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The recently released Competition and Consumer (Industry Codes - Franchising) Amendment (Fairness in Franchising) Regulation 2021 makes significant reforms to the Franchising Code of Conduct (Code), which will give franchisees a right to be provided with more information and remedies, particularly with respect to dispute resolution, disclosure and termination.

Many of the amendments will affect franchise agreements entered into, renewed or extended on or after 1 July 2021, however dispute resolution reforms will apply to disputes notified from 2 June 2021 and changes to the disclosure document will apply from 1 November 2021. These reforms follow a 2018 parliamentary inquiry that called for fairer and more transparent franchising laws.1

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