Australia's Evolving Franchising Laws: Help or Hindrance?

Australia has traditionally been an attractive market for international franchise systems, especially from the US. Australia has had special purpose franchise legislation since Oct 1, 1998. This law, a regulation made under Australia's anti-trust and consumer protection legislation, is known as...

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Bibliographic Details
Published in:Franchising World 2007-07, Vol.39 (7), p.68
Main Author: Ward, Penny
Format: Article
Language:English
Subjects:
Agreements
Compliance
Disclosure
Federal legislation
Financial disclosure
Foreign investment
Franchisees
Franchises
Franchising
Legislation
Market entry
Marketing
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Summary:Australia has traditionally been an attractive market for international franchise systems, especially from the US. Australia has had special purpose franchise legislation since Oct 1, 1998. This law, a regulation made under Australia's anti-trust and consumer protection legislation, is known as the "Franchising Code." It is both a disclosure and relationship law. The code requires a disclosure document in a prescribed form to be provided to a prospective franchisee at least 14 days before a franchise agreement or any agreement to enter into it is signed or before any refundable payment is made. The code's current disclosure requirements are not easily applied to foreign franchise companies in respect of their dealings in Australia. As a result, a cautious franchise company considering a franchise offering in Australia would be well-advised to obtain as much advice on protecting itself in the sales process as it does on compliance with the local franchise law.
ISSN:1041-7311