Code changes effective from today

Written on the 1st of July 2010 by Fiona Taylor

Changes to the Australian Franchising Code of Conduct, announced earlier this year, are effective from today (July 1, 2010).

A Fact Sheet on the franchise regulation changes is available from the Australian Competition and Consumer Commission (ACCC).

The Franchising Code of Conduct changes relate to:

• End of Term Arrangements
• Risk Statement
• Disclosure
• Good Faith
• Unilateral Variation
• Capital Expenditure
• Dispute Resolution
• Stepped Introduction

The changes are the result of a Parliamentary Inquiry into franchising and aim to help potential franchisees better understand the obligations of a franchise up front.

These changes apply to all franchise agreements entered into, renewed or extended on or after July 1, 2010.