For some franchise systems the introduction of the Personal
Property Security Act 2009 (Cth) (PPSA) may be significant, with
specific action required to protect the franchisor's interests
or ensure franchisee compliance. For others it may ultimately prove
less critical, or even irrelevant. However we recommend that all
franchise systems carefully consider the possible application of
the PPSA, and take a conservative and long term approach to the
law.
One of the challenges when a new regulatory regime is introduced
is anticipating all of the possible scenarios that could arise.
This is because our laws are developed and refined not just through
legislation, but by regulation, judicial determination and
administrative interpretation. It can be years before there is
certainty around the meaning of new laws, but in the meantime
businesses need to make decisions and protect their assets.
