Yesterday, Dr. Michael Schaper released the independent review of the Franchising Code of Conduct to the Australian government. He recommended that the Code should be “remade” and should not be allowed to sunset in April 2025. He did however recommend changes to existing provisions. He also recommended the government evaluate the possibility of licencing franchisees. He recognised a desire to address persistent issues in the sector without necessarily imposing greater complexit...

In a recent Federal Court ruling, Honda Australia Pty Ltd faced hefty penalties of $6 million for engaging in misleading and deceptive conduct.  It involved Honda’s false representations made to customers of three formerly authorized dealerships, saying that the latter would close or had closed and would no longer service Honda vehicles, when in fact, the dealerships continued to operate independent service centres. The consequences of Honda Australia's actions extend beyond ...

BACKGROUND The recent New South Wales Supreme Court case Lee v ATL (Australia) Pty Ltd [2023] NSWCA 327 found that a guarantor was not liable to a lender under a loan deed where that deed had been amended by a side letter between the borrower and the lender which did not include the guarantor. The Court found that the guarantor was not liable to the lender at all. TAKEAWAY If a franchisor is agreeing to vary the terms of a franchise agreement or related document, it should ensure that the...