franchising

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Franchising Update: Key Changes to the Franchising Code for 2025

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Franchising Update: Key Changes to the Franchising Code for 2025

If you are a franchisor or a franchisee, it is important to be updated on the upcoming changes to the franchising Code of Conduct. The new Code contains a number of changes which will significantly increase the compliance burden and risk for the franchisors. The new Code is set to commence on 1 April 2025, franchisors may need to redraft the franchise agreements before that date to avoid penalties.

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Sladen Snippet - Proposed Licensing Regime for the Franchising Sector – chance to submit views

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Sladen Snippet - Proposed Licensing Regime for the Franchising Sector – chance to submit views

In November 2024, the Government introduced a consultation paper proposing the incorporation of a licensing regime for the franchising sector.

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Sladen Snippet - Consultation process Franchising code of conduct review

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Sladen Snippet - Consultation process Franchising code of conduct review

The Australian government has proposed reforms to the Competition and Consumer Act in response to the Food and Grocery Code of Conduct and Franchising Code of Conduct reviews. The consultation process closes on 4 October 2024 and welcomes submissions from interested stakeholders.

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Franchising Update: Peak Physique found liable for representations which induced purchase of franchise

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Franchising Update: Peak Physique found liable for representations which induced purchase of franchise

On 1 August 2024, the Magistrates Court of Queensland found Peak Physique Franchisor Group Pty Ltd (Peak Physique) engaged in misleading and deceptive conduct and was in breach of section 18 Australian Consumer Law through its conduct which induced the purchase of one of their premises through representations of ongoing support to the franchisee and the profitability of the franchise purchased.

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Collective bargaining for franchisees: how to negotiate better terms together without raising competition concerns

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Collective bargaining for franchisees: how to negotiate better terms together without raising competition concerns

Collective bargaining presents on its face an attractive option for franchisees. By joining forces and splitting negotiating costs, franchisees may be able to use collective power to strengthen their bargaining position and negotiate more favourable outcomes with their franchisor.

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Franchising Update: Franchisor liable for Franchisee non payments of employee entitlements - Fair Work Ombudsman v 85 Degrees Coffee Australia Pty Ltd

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Franchising Update: Franchisor liable for Franchisee non payments of employee entitlements - Fair Work Ombudsman v 85 Degrees Coffee Australia Pty Ltd

On 4 June 2024 the Federal Court of Australia handed down the decision of Fair Work Ombudsman v 85 Degrees Coffee Australia Pty Ltd [2024] FCA. This decision resulted in the Fair Work Ombudsman penalising the Australian franchisor of the 85 Degrees brand $1.44 million for its “systemic failure to ensure compliance within its franchise network” which included underpayments at several of their Sydney franchisee outlets.

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Government Response to December 2023 Franchising Independent Review

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Government Response to December 2023 Franchising Independent Review

The Government has released its response to the Franchising Independent Review agreeing to the majority of the recommendations. This article identifies some key changes to be made, the timing for these and explores what this may mean for franchises.

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ACCC Report on Unfair Contract Terms, Case Update and Franchising Review Report Summary Findings and Recommendation

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ACCC Report on Unfair Contract Terms, Case Update and Franchising Review Report Summary Findings and Recommendation

This update replicates a legal update provided to the Franchise Council of Australia’s February breakfast at Kooyong Lawn Tennis Club.