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New ASQA Requirements may trigger the Franchising Code for RTOs

Posted by Elizabeth Gore-Jones on 13 August 2019

ASQA has released new requirements for RTO third party arrangements.

They may trigger the obligation for RTOs to be a franchisor under the Franchising Code of Conduct.

When following the ASQA requirements, an RTO may also be required to comply with the Franchising Code if:

1. The RTO must tell its third party providers how to operate or market their business;

2. The third party must undertake advertising using the RTO's logo, trade mark etc;

3. The third party is required to pay the RTO.

RTOs with third party arrangements should seek urgent assistance to ascertain if they trigger the Franchising Code.  A failure to comply with the Franchising Code could result in significant penalties.

Please feel free to contact us for further assistance.

 

Author: Elizabeth Gore-Jones
About: Elizabeth specialises in franchising law. She lectures at Bond University PLA in franchising, she sits on the Queensland Law Society Franchising Committee, she is a past member of the Women in Franchising committee and a past member of the Franchise Council of Australia.
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Tags: Business News Franchisee Franchisor

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