Franchisors Beware - ACCC on the hunt

Franchisors need to beware of a new push by the Australian Competition and Consumer Commission (ACCC) to change the image of the franchise industry through the enforcement of their increased powers acquired under the new Competition and Consumer Act.

Much has been written about the ACCC's power to serve substantiation, infringement and public warning notices. Recently however, there has been a lot of focus on the power given to the ACCC to provide audit notices to franchisors for the production of a range of documents.

The Act provides grounds for the ACCC to compel a franchisor to provide it with any documentation, or information, it is required to produce to its franchisees and keep under the Franchising Code.