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Home > Franchisor > Franchise Law and Legal Issues
Franchise law varies from country to country.
In Australia franchise law, through the Franchising Code of Conduct is currently the subject of a Federal Government review.
Eleven franchise law amendment recommendations have been made by the Federal Parliamentary Joint Committee on Corporations and Financial Services.
An official government response has been made, however the final franchise law reforms are dependent on the findings of an expert panel.
There is currently no requirement under franchise law for Australian franchisors to pre-register with the Australian Competition and Consumer Commission (ACCC), who is responsible for administering the Franchising Code of Conduct, or any other statutory body. However franchise registrations are required in some countries.
In simple terms, there are little or no barriers to entry for a potential franchisor or new franchise in Australia, however franchise law expects all franchisors will be compliant at all times, irrespective of franchise business size or length of time franchising.
For this reason, reputable franchise business operators and franchisors who use experienced and competent franchise consultants will count the cost of franchise law compliance from an early stage in the development of their franchise business model.
Franchise businesses that do not meet this level of Franchising Code of Conduct compliance from the outset, or which take shortcuts through the use of inexperienced franchise consultants (or no advisors at all), may later find deficiencies in their franchise business model and severe franchise legal complications.
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