From 1 January 2015, the current Franchising Code of Conduct will be repealed and replaced with a new code. This will apply to all franchise systems operating in Australia. The new Code will apply to all franchise agreements executed after 1 October 1998.
The ACCC is developing materials to help franchisors, franchisees and prospective franchisees understand their rights and obligations under the new code, including:
• guidance on what the duty of good faith is likely to entail; and
• guidance on how the ACCC will enforce compliance with the code
EAC along with other members of the REIA Affiliates Council have assisted the REIA with the review of the code and several submissions were made leading up to the new Code of Conduct being released.
We suggest that those members who are part of a franchise group familiarise themselves with the changes.
The new code can be view here.