The Franchising Code of Conduct
The Franchising Code of Conduct ("the Code") is a
mandatory industry code prescribed under section 51AD of the
Competition and Consumer Act 2010 ("the Act"). Its
purpose is to regulate the conduct between participants in
franchising.
There are no penalties within the Code itself dealing with a
breach of the Code itself. However, if the Code is breached this
will constitute a breach of section 51AD of the Act which prohibits
a corporation from contravening an applicable industry code.
Breaching section 51AD may attract pecuniary penalties, injunctions
and / or damages.
Obligations for Disclosure under the Code
Since the Code amendments in 2008 and 2010, a franchisor's
obligations for disclosure of information to franchisees have
increased. This appears to have arisen out of a concern that
franchisees were not receiving the information they required in
order for them to make an informed decision as to whether or not
they should
