Business Franchise Australia

CHANGES ARE COMING – START PREPARING!

The Government has, as at November 2020, released a paper outlining the likely changes that will be implemented to the Franchising Code of Conduct from July 2021. The status quo is definitely about to change, especially in regard to a Franchisor’s disclosure obligations. It will be important to update your documents and get the items below in check.

Disclosure is more and more becoming the way by which franchisees assess all aspects of the franchise network and business opportunity and as such, following a number of legal proceedings over 2019-2020, is becoming the document that a franchisee may rely on and consider a key document in the course of their due diligence and later any disputes relating to the initial representations made by a Franchisor. As such it is important to get your disclosure right, so to avoid any unnecessary visits by ACCC enforcement officials and/or disputes by franchisees due to inadequate disclosure under the new rules.

Some of these changes, as per the November paper, include the following—though further updates may soon follow as the July 2021 commencement date approaches.

 

Nina Rossi is a commercial and intellectual property lawyer admitted to the Supreme Court of New South Wales. Nina has worked over the past nine years in commercial and corporate advice and contract drafting, litigation, intellectual property registrations, advice and disputes and insolvency matters. Nina is keen to work with clients to grow their franchise network, develop their business and overall achieve their goals. Nina Rossi has acted as Principal of DC Strategy Lawyers since April 2020.