The new Franchising Code of Conduct will start on 1 January, 2015 as anticipated. Although, the Code includes a transitional arrangement for the updating of Disclosure Documents, a franchisor may need to change its franchise agreement from 1 January, 2015 and those changes may need to be reflected in a new Disclosure Document.  As such, the transitional arrangements may not mean a franchisor is relieved from updating the Disclosure Document from 1 January, 2015. Impo...

With the proposed changes to the Franchising Code of Conduct due to commence on 1 January, 2015, is there any benefit for franchisees to wait to sign a franchise agreement? If there is no urgency to sign the franchise agreement or to start the franchised business then the answer may be "yes". The changes oblige franchisors to disclose more information in their disclosure documents.  This information may be invaluable for a potential franchisee in deciding to enter in...

Some of the changes you can expect to the Franchising Code of Conduct from 1 January, 2015: 1. Online Sales If a franchisor, its associates, any of its franchisees or any third parties can sell some or all of its products online then the franchisor may need to disclose this.  The franchisor needs to disclose the extent to which the goods or services can be supplied into the territory of a franchisee. If the goods or services are made available through a third party website...