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Competition and Consumer (Industry Codes—Franchising) Regulations 2024
In force
Administered by
Department of the Treasury
This item is authorised by the following title:
Competition and Consumer Act 2010
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F2024L01605
09 December 2024
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Chapter 1—Preliminary
Part 1—Preliminary
1 Name
2 Commencement
3 Authority
4 Simplified outline of this instrument
5 Schedule 2
Part 2—Definitions
6 Definitions
7 Meaning of franchise agreement
Part 3—Mandatory industry code
8 Mandatory industry code
9 Acquisition of property
10 Franchise agreements to which the Code does not apply
11 Civil penalty provisions of the Code
12 Reviews
13 Interaction with the Privacy Act 1988
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Chapter 2—Franchising Code of Conduct
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Part 1—Preliminary
14 Purpose of Chapter
15 Purpose of Code
16 Functions of Australian Small Business and Family Enterprise Ombudsman
17 Amount of civil penalty for certain contraventions by bodies corporate
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Part 2—Obligation to act in good faith
18 Obligation to act in good faith
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Part 3—Requirements before entry into, renewal, extension or transfer of franchise agreements
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Division 1—Application
19 Application of Part—master franchisors
Division 2—Disclosure document
20 Franchisor must create disclosure document
21 Updating disclosure document—general
Division 3—Information statement
22 Information statement to be given by franchisors
Division 4—Considering documents
23 Entering into, renewing and extending franchise agreements
24 Transferring franchise agreements
25 Form of documents to be given under this Division
Division 5—Statements to be received by franchisors
26 Statements with respect to disclosure document and this Code
27 Statements with respect to independent advice
Part 4—Franchise agreements
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Division 1—Application
28 Application of Part—master franchisors
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Division 2—Franchisor’s obligations
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Subdivision A—Disclosure obligations
29 Copy of lease etc.
30 Copies of other agreements
31 Financial statements for specific purpose funds
32 Franchisee may request updated disclosure document
33 Giving updated disclosure document on request by franchisee
34 Disclosure of materially relevant facts
Subdivision B—Notification obligations (other than for new vehicle dealership agreements)
35 Application of Subdivision
36 End of term arrangements
Subdivision C—Record keeping obligations
37 Keeping certain information and documents
Division 3—Terms of franchise agreements
38 Franchisor’s legal costs relating to franchise agreement
39 Prohibition on release from liability etc.
40 Jurisdiction for settling disputes
41 Costs of settling disputes
42 Restraint of trade clause if franchise agreement not renewed or extended
43 Franchise agreement must provide for compensation for early termination—general
44 Franchise agreement must provide reasonable opportunity for return on franchisee’s investment—general
45 Franchise agreement must provide for compensation for early termination—new vehicle dealership agreements
46 Franchise agreement must provide reasonable opportunity for return on franchisee’s investment—new vehicle dealership agreements
47 Discussion about significant capital expenditure disclosed in disclosure document
Division 4—Transfer of franchise agreements
48 Request for franchisor’s consent to transfer
49 Franchisor’s consent to transfer
Division 5—Termination of franchise agreements in cooling off periods
50 Termination by franchisee—cooling off periods for new franchise agreements
51 Repayments by franchisor after termination by franchisee
52 Termination by franchisee—cooling off period for transferred franchise agreements
53 Repayments following termination by new franchisee
Division 6—Termination of franchise agreements other than in cooling off periods
54 Franchisee may propose termination at any time
55 Termination by franchisor—breach by franchisee
56 Termination by franchisor—no breach by franchisee
57 Termination by franchisor with 7 days’ notice on grounds for which franchisee may not notify dispute
58 Termination by franchisor on grounds for which franchisee may notify dispute
59 Requiring franchisee to cease operating franchised business on termination grounds
Division 7—Miscellaneous
60 Franchisor may require only certain significant capital expenditure
61 Payments to and from specific purpose funds
62 Franchisor not to vary franchise agreement retrospectively without franchisee’s consent
63 Disclosure of personal information of former franchisees
64 Association of franchisees or prospective franchisees
65 Franchisor not to require franchisee to pay franchisor’s legal costs relating to franchise agreement
66 Franchisor not to require franchisee to pay costs of settling disputes
67 Franchisor not to rely on restraint of trade clause if franchise agreement not renewed or extended
Part 5—Resolving disputes
Division 1—General
68 Right to bring proceedings unaffected by this Part
69 Internal complaint handling procedure
70 Resolving disputes
71 When a party is taken to be trying to resolve a dispute
Division 2—Code complaint handling procedure
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Subdivision A—Notification of dispute
72 Notification of dispute
73 Similar disputes between 2 or more franchisees and one franchisor
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Subdivision B—ADR process
74 ADR process
75 When a party is taken to attend an ADR process
76 Termination of ADR process by ADR practitioner
77 Costs of ADR process
78 Ombudsman may publish franchisor’s refusal to engage in ADR process
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Subdivision C—Arbitration
79 Arbitration by agreement for dispute resolution
80 Arbitration procedure
81 Termination of arbitration by arbitrator
82 Costs of arbitration
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Subdivision D—Confidentiality
83 Confidentiality requirements
Part 6—New vehicle dealership agreements
Division 1—Preliminary
84 Application of Part
Division 2—End of term obligations
85 Notification obligation—franchisor
86 Notification obligation—franchisee
87 Obligation to manage winding down of agreement
Division 3—Resolving disputes
88 Franchisees may request multi franchisee dispute resolution
Part 7—Franchise Disclosure Register
Division 1—Keeping and content of Register
89 Secretary to keep Register
90 Contents of Register
91 Secretary may correct clerical errors and remove, update and replace certain information and documents
Division 2—Obligation to provide information for inclusion in the Register
92 Initial obligation to provide information for inclusion in Register
93 Obligation to annually update or confirm information included in Register
Division 3—Redacting certain information from documents
94 Redacting certain information from documents
Division 4—Giving of information by agents
95 Agents may provide or give information
Division 5—Other matters
96 Delegations by Secretary
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Chapter 3—Application, saving and transitional provisions
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Part 1—Provisions relating to this instrument as made
97 Application of this instrument—agreements entered into etc. on or after 1 April 2025
98 Saving and application of old regulations—agreements existing on 1 April 2025
99 Transitional arrangements relating to certain disclosure documents given before 1 April 2025
100 Transitional arrangements relating to specific purpose funds that are marketing or other cooperative funds—deemed compliance
101 Saving of Competition and Consumer (Industry Codes—Franchising) (Additional Information Required by the Secretary) Determination 2022
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Schedule 1—Disclosure document for franchisee or prospective franchisee
1 First page
2 Franchisor details
3 Business experience
4 Litigation
5 Payments to agents
6 Existing franchises
7 Master franchises
8 Intellectual property
9 Franchise site or territory
10 Supply of goods or services to a franchisee
11 Supply of goods or services by a franchisee
12 Supply of goods or services—online sales
13 Sites or territories
14 Significant capital expenditure, and payments other than payments to agents
15 Specific purpose funds
16 Financing
17 Unilateral variation of franchise agreement
17A Arbitration of disputes
17B Ways of ending the franchise agreement early
18 Term of agreement and arrangements to apply at the end of the franchise agreement
19 Amendment of franchise agreement on transfer of franchise
20 Earnings information
21 Financial details
22 Updates
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23 Receipt
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Schedule 2—Repeals
Competition and Consumer (Industry Codes—Franchising) Regulation 2014
Competition and Consumer (Industry Codes—Franchising) Repeal Regulation 2014