New Franchising Code celebrates its first birthday

The most recent edition of the Franchising Code of Conduct (Code), which was the most significant change in the regulation of the franchising industry since the Code was first introduced, has now been in force for a year. The first anniversary of the Code changes marks a good time for franchisors to ensure they are compliant with the new Code to avoid hefty penalties.

Disclosure

The new Code, among other things, introduced a suite of new disclosure requirements, the most significant of which include requirements for franchisors to:

• update their system's disclosure document to reflect the new mandatory Code template;
• provide an information sheet to prospective franchisees, outlining the general risks and rewards of franchising;