Brisbane office (07) 3180 0150
Gold Coast office (07) 5529 8803
Home >  Blog >  Enforcing the Franchising Code: Recent activities & proposed reforms

Enforcing the Franchising Code: Recent activities & proposed reforms

Posted on 28 October 2014

Dr Michael Schaper, the Deputy Chair of the ACCC has addressed the National Franchise Convention Legal Symposium.

His presentation can be viewed here -activities-proposed-reforms

Dr Schaper outlined the current cases being pursued by the ACCC against franchisors and also the case brought against 9 Harvey Norman franchisees for false and misleading representations about consumer guarantees.

He outlined that the ACCC has conducted 6 audits of fast food franchisors and 6 audits of fitness franchisors.  Most franchisors have been found to be compliant with their requirements with only minor issues found.

With disclosure documents required to be updated by 31 October, 2014 it is important to note that the minor issues found by the ACCC included:

1. failure to disclose information about past and current franchisees and their contact details;

2. omissions in the disclosure document; and

3. failure to have the marketing fund audited.

If and when the highly anticipated amendments to the Franchising Code of Conduct commence (anticipated to be 1 January, 2015) it is expected the ACCC's audit powers will be greated extended.

Interestingly the ACCC take around 35 cases to court each year.  This process is initiated by a complaint to the ACCC and the ACCC receive approximately 160,000 complaints and enquiries each year.

Tags: News

latest news

Bob Jane Corp Failure to Comply with Code

May 01 2020
The Franchising Code of Conduct requires that a franchisor advise a franchisee in writing at least 6 months before the end of the franchise term whether or not the franchisor intends to renew or extend the franchise agreement. A failure to com...

Quick Question?

Liability limited by a scheme approved under professional standards legislation

Brisbane Office Address: Clarence Chambers,
Level 10, 239 George St,
Brisbane QLD 4000

Gold Coast Office Address: Wyndham Corporate Centre
Level 9, 1 Corporate Court
Bundall QLD 4217

Central Post Office Box Address: P.O. Box 428
Oxenford, QLD 4217