Posted
on 19 November 2014
The new Franchising Code of Conduct provides that a franchisor must give a franchisee a copy of the disclosure document within 14 days of a written request by the franchisee.
That is nothing new and a similar clause is contained in the current Franchising Code of Conduct.
However, the new Code provides for a penalty of up to 300 penalty units if the franchisor does not comply with the request on time.
That is a potential penalty of up to $51,000!
Franchisors be warned, you ...
Posted
on 17 November 2014
An interesting change to the Franchising Code of Conduct from 1 January, 2015 relates to jurisdictions for settling disputes.
A franchise agreement must not contain a clause which requires an action in relation to a dispute to be brought outside of the State or Territory in which the franchised business is operated.
The provision then goes on to state that a franchise agreement cannot require mediation to be brought outside of the State or Territory in which the franchised bus...
Posted
on 10 November 2014
The current Franchising Code of Conduct states that nothing in the Code limits an obligation to act in good faith.
So, while the provision really didn't add anything, it certainly didn't detract from the evolving law of good faith.
At clause 6 of the new Franchising Code of Conduct (coming into effect from 1 January, 2015) it is clear that each party must act in good faith to the other and that the meaning of "good faith' is basically the law as it evolves.
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