"Sweeping reform" to the Franchising Code to take effect from 1 July 2010

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16 June 2010

On 4 June 2010 the Federal Government announced a number of changes to the Franchising Code of Conduct (the Code).

The amendments to the Code impose greater obligations on franchisors in terms of the disclosures they are required to make to new and renewing franchisees before they sign a franchise agreement.

When these amendments were foreshadowed by the Federal Minister for Small Business in March this year, he labelled them “the most sweeping reform of the [Code] since its inception 12 years ago”.

 


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