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ARTICLE · 07 MAY 2022

Increased penalties for Franchising Code of Conduct announced

Ivy Law Group
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Summary of new changes to the Franchising Code of Conduct.

AustraliaCorporate/Commercial Law
Geeti Chawla
Geeti Chawla
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In March 2021, the Federal Government announced several amendments to the Franchising Code of Conduct (Franchising Code) following an enquiry into the operation and effectiveness of the Franchising Code. Further changes have since come into effect on 15 April 2022, which will see increased penalties being imposed on franchisors for breaching certain provisions of the Franchising Code. In this article, we have summarised these new changes.

Maximum penalties for franchisor breaches

Franchisors who are found to be in breach of the Franchising Code will now be exposed to greater penalties. These penalties apply to an array of clauses of the Franchising Code.

In most cases, the maximum penalty will be up to $133,200.  However, for breach of certain provisions, the maximum penalty for corporations will be the greater of:

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