International Law

Franchising disclosure changes

By David Jacobson

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 expernditure,
• 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.

Full post as published by Australian Regulatory Compliance Review on June 14, 2010 (boomark / email).