New Franchising Code imminent from 1 January 2015 - maybe

For the past 20 months the Federal Government has been contemplating changes to be made to the Franchising Code of Conduct. Whilst we await the final legislation to be released, our best guess as to how the new legislation will read is as follows:

• The new Code will come into effect from the 1st of January 2015 and will apply immediately to all franchise agreements;
• The provisions of the Code (notably good faith) and new pecuniary penalties apply to conduct as and from 1 January 2015;
• Franchisors will be required to provide prospective franchisees with a new Information Statement which explains franchising and outlines some of the potential risks;
• There will be a new form disclosure document for franchisors and will exclude provisions such as clause cross-referencing requirements. However there will be additional disclosure in relation to: