Franchising Code amendments now in effect

A number of recent amendments to the Franchising Code of Conduct (the code) come into effect today, 1 July.

The code is an industry code under the Competition and Consumer Act 2010(Cth) and regulates Australian franchisees and franchisors.

On 1 June 2021, the Federal Government made the Competition and Consumer (Industry Codes- Franchising) Amendment (Fairness in Franchising) Regulations 2021(the amendment regulation), which amends the code.

The amendments follow the Parliamentary Joint Committee on Corporations and Financial Services’ ‘Fairness in Franchising’report, and are intended to improve fairness and transparency in the sector and prevent systemic exploitation of franchisees.

A consolidated version of the code incorporating all the changes made by the amendment regulation is not yet available on the Federal Register of Legislation.

Until a consolidated version is published, members should review both the code and the amendment regulation. For more information about the code, see the ACCC website.

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