Are the days when you had no bargaining power with the
franchisor a thing of the past?
The Australian Government has long recognised the importance of
the franchise industry to the small business community in
Australia. To further promote growth in the franchise sector,
reduce red tape, and encourage best practice principles, a new
Franchising Code of Conduct (Code) came into effect on 1 January
2015.
Additionally, the new Unfair Contract Terms regime (UCT regime)
under the Australian Consumer Law (ACL) came into effect on 12
November 2016. Under the UCT regime, the bargaining power between
you and the franchisor has been equalised.
When buying a franchise, it would be wise for you to understand
your rights so that you can make an informed decision before
signing the franchise agreement.
