They say legislation is like sausages – the closer you
get to seeing how it is made, the less respect you have for the
finished product. On the flip side you have the oft-criticised
legal system. Yet the High Court deliberations in Masters of
Education Services v Ketchell demonstrate that the courts can
ultimately be trusted to deliver common sense decisions in tune
with the requirements of the community.
The current Federal inquiry into franchising has received over
100 submissions. Not one submission identifies any endemic problem
in franchising, yet further legislative change is at short odds.
And the area of greatest focus – "good
faith".
Here is our hot tip – the Federal inquiry will
recommend the inclusion of a statutory duty of good faith and fair
dealing into the Franchising Code of Conduct. And if such a
recommendation were implemented, a new wave of contractual
uncertainty will sweep the sector, probably lasting until a court
determined that the duty was
