JUNE 2010

Reforms To The Franchising Code

Dr Michael Schaper, ACCC

The Federal Government over the past year has introduced a number of changes to the Franchising Code, some of which are now embodied in legislation. Dr Michael Schaper, deputy chair of the ACCC, says the aim is to provide greater clarity for both franchisors and franchisees as to their rights and responsibilities, and - at the same time - set out the penalties for false and misleading representations, and provide a clearer definition of unconscionable conduct. The ACCC will also be undertaking an education campaign, based on a simple document, to help potential franchisees assess the risks, costs and benefits of any franchise scheme. There's also an emphasis on mediation as a useful way of settling franchising disputes.