Around the World
We have recently witnessed some major changes to franchise
legislation in both California and Australia. Developments in these
jurisdictions are of importance to the global franchise world; in
particular, shifts in California's regulatory landscape are
significant given its role as a global pioneer of franchise
legislation. In fact, California was the first state to enact
franchise legislation in 1970. Australia, on the other hand, toyed
with all manner of indirect and voluntary regulation before
adopting a fairly stringent regulatory regime in 1998.
Franchising is a global industry – what happens in one
jurisdiction often travels to others, albeit sometimes years (or
even decades) later. Fundamentally, what drives franchise
regulation are edgy business practices, widespread harm, and a
receptive political climate. Changes in Australia and California
are noteworthy because they represent the latest thinking as to
where things are going when the