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.
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