As soon as you have a real interest in a franchise, franchisees should provide you with a short information sheet outlining the risks and opportunities of franchising. It should be ensured that the measures laid down in points 26 to 29 of the Code are complied with in the event of cessation of an exemption. As a general rule, for example, these measures require mediation carried out prior to termination, except in special circumstances. If your franchise agreement is a default contract, you should also consider whether the Unfair Contract Terms Act applies. A standard contract is one that has been prepared by the other party and you have few opportunities to negotiate the terms. More information on unfair contract terms and the purchase of a franchise can be found on the ACCC website. If you want to start a business, buying a franchise can be a good alternative to starting a single business. If you`re considering expanding your business, a well-managed franchise network can be an effective way to open up new markets. The Code of Conduct on Franchising came into force on 1 January 2015 and replaced the old Franchise Code.
It applies to all conduct concluded after that date under franchise agreements concluded on or after 1 October 1998. If a franchise agreement was concluded after 1 January 2015, the franchise agreement is subject to all the provisions of the Franchise Code of Conduct. 6.1 Is it necessary for franchised documents to be subject to local law? If not, is there a generally accepted norm regarding the choice of legislation in force, when it is not a local law? The ACCC Franchisee Manual helps you understand: Disputes that arise under franchise agreements can be handled in two ways. First, the Code of Conduct on Franchising requires that each franchise agreement should have a minimum mediation procedure for dispute resolution. One of the conditions of this procedure is that the parties must participate in mediation (if the parties cannot resolve the matter themselves and refer the case to mediation) or expect a civil fine of 300 penalty units (or $51,000). A step-in certificate can be executed, although it is best entered at the time of entry into the franchise, as it also requires the signature of the owner.. . . .