Call Us Today 07 3087 3493
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 www.accc.gov.au/speech/enforcing-the-franchising-code-recent -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

Franchisor Action Response - Franchise Review

Mar 18 2019
The recommendations from the Parliamentary Committee were relased last week. This link will take you to a summary of the recommendations that relate to the franchise industry and a recommended action plan for franchisors: View here: Fra...

Quick Question?

Liability limited by a scheme approved under professional standards legislation

Brisbane Office Address: Level 36, Riparian Plaza,
71 Eagle Street, Brisbane,
Queensland, Australia, 4001

Gold Coast Office Address: PO Box 428,
Oxenford,
Queensland, Australia, 4210