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Fairness in Franchising Report: Key Recommendations and Potential Implications

Date: 8 May 2019

The Parliamentary Joint Committee on Corporations and Financial Services Fairness in Franchising Report 

1. Proposed Regulatory Reform of the Franchising Industry

On 14 March 2019, the Parliamentary Joint Committee on Corporations and Financial Services (Committee) released the Fairness in Franchising Report (Report), following their inquiry into the Operation and Effectiveness of the Franchising Code of Conduct (Inquiry). In the Report, the Committee proposes extensive reform of the franchising industry, including numerous proposed amendments to the Franchising Code of Conduct (Cth) (Franchising Code) as well as increased regulator responsibilities and powers.

At this stage, it is not clear which recommendations will be implemented or the expected time frame for implementation. Notwithstanding, it is critical that franchisors understand the key potential compliance challenges and consider taking a proactive approach in preparation for the anticipated changes to the Franchising Code. This update provides a brief explanation of several key recommendations and their potential implications and proposes priorities for consideration in anticipation of the proposed reforms.

To read more about the recommendations and potential implications, click here.

This publication/newsletter is for informational purposes and does not contain or convey legal advice. The information herein should not be used or relied upon in regard to any particular facts or circumstances without first consulting a lawyer. Any views expressed herein are those of the author(s) and not necessarily those of the law firm's clients.

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