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ARTICLE · 14 JULY 2010

Franchising Code of Conduct Changes Explained

Cooper Grace Ward
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In response to the recent parliamentary inquiries concerning franchising and unconscionable conduct, the Federal Government has amended the Franchising Code of Conduct (Code)

AustraliaCorporate/Commercial Law
Charles Sweeney
Charles Sweeney
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In response to the recent parliamentary inquiries concerning franchising and unconscionable conduct, the Federal Government has amended the Franchising Code of Conduct (Code). These changes took effect on 1 July 2010.

The majority of the amendments update the requirements as to what must be included in the disclosure document (Annexures 1 and 2 of the Code). It is imperative that franchisors review their current disclosure document and ensure it mirrors the amended Code.

Significant Changes to the Disclosure Document

The Disclosure Document must include the following warning - "Franchising is a business and, like any business, the franchise (or franchisor) could fail during the franchise term. This could have consequences for the franchisee."

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