Categories: Franchise News|Franchisor Advice|Legals

The past two years have been a very challenging time for small businesses, with COVID-19 and natural disasters affecting many people.

An updated version of the Franchising Code of Conduct was released by the Federal Government on January 28 to include changes flowing from recent amendments to National Insolvency Laws.

Territory issues are a fertile issue of dispute often between franchisees in the same system. The trend over the years in retail and hospitality has been not to grant an area or territory but to offer a right to a site and rights to conduct local area marketing (“LAM”).

Most franchise systems in Australia and New Zealand rely on specific territories.  A potential franchisee who has selected a franchise system and obtained a copy of the disclosure document and franchise agreement from the franchisor must look carefully at the territories available and what is being offered by the franchisor.

In the wake of the Covid 19 pandemic, it has been reported that many people are re-assessing their lives, where they live and their sources of livelihood.