Franchising Code changes - Five key areas of interest

The highly-anticipated changes to the Franchising Code of Conduct ('the Code') are now in force.

These changes follow a parliamentary inquiry into the Code, which began in 2018. The inquiry saw many franchisees explain how their franchised business failed, and the consequences on their lives. It also exposed questionable business strategies by some franchisors, and has directly led to at least one enforcement action by the Australian Competition and Consumer Commission ('ACCC').

It is important for both franchisors and franchisees to understand that significant changes to the Code are now in force - many of which involve imposing civil penalties for breach.

Below is a summary of five core areas that have seen significant change.