Franchising disclosure changes

The Trade Practices (Industry Codes – Franchising) Amendment Regulations 2010 (No. 1) amend the Trade Practices (Industry Codes – Franchising) Regulations 1998 .

The changes increase franchisor disclosure on a number of different matters including:

  • liability for significant capital expenditure,
  • the right of a franchisor to unilaterally vary the agreement,
  • the right of a franchisor to change the agreement when a franchisee transfers it and
  • notice required for non-renewal of a franchise.

The changes also provide guidance to franchisees and franchisors on the conduct expected of them during dispute resolution processes.

The changes apply to franchise agreements entered from 1 July 2010.

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