Motor vehicle changes to Franchise Code effective now

Introduction

Regulations introducing a new automotive section into the Franchising Code of Conduct (Franchising Code) are effective from 1 June 2020. Although the regulations largely follow the Exposure Draft issued in February this year, the 1 June implementation date caught many by surprise. This is particularly the case given the consultation process consistently flagged a 1 July 2020 commencement date and the Exposure Draft itself contained an implementation date of 1 July. It's unclear whether this was an inadvertent error, or whether the Government was keen to move quickly given the economic conditions currently confronting the automotive sector.

Application of the changes