Home About Us Membership Information Events Awards Media Education Representation Bookshop Partnership Contact Us

Franchise review pushes for 'good faith' provision for Frachising Code

Written on the 17 May 2013

BRW Online
By Jane Lindhe

Franchisors would have an obligation to act in “good faith” when dealing with their franchisees, especially when ending a contract, an independent review of the $130 billion franchising sector has recommended.

Despite the sector’s initial lobbying against the move – which essentially recognises the goodwill (financial or otherwise) that a franchisee has brought to a business – the four-month independent review, led by Alan Wein, has recommended the “strengthening of obligations of parties to act in good faith in a franchise”.

Wein’s review is the fourth major national review of the franchising sector and industry code of conduct in seven years. Read the report here.

In the past franchise groups have argued that the fundamentals of franchising as a business mean that the franchisor, as opposed to the franchisee, builds the business and accepts the majority of the risks involved. But at the risk of having seperate laws across the states, Franchise Council of Australia Deputy Chairman Stephen Giles says the industry body worked closely with Wein to ensure the wording of the recommendations provided “greater clarity” to franchisees without restricting the trade of franchisees.

Wein has made special mention to exclude from the good faith provisions any guarantee that a franchise agreement would be immediately renewed following the end of an agreement. He also recommended the rules “not be defined”, instead the “unwritten law relating to good faith should be incorporated in a manner similar to the unconscionable conduct prohibition set out in section 20 of the Australian Consumer Law”.

Click here to read full article


Latest News

He may have been told by his high school teachers that he was a lazy student and would never get anywhere, but Warren D'cruz of Auto Masters...
The Franchise Council of Australia has welcomed the Federal Government's appointment of a new adviser to resolve disputes under the Franchis...
The Franchise Council of Australia has welcomed the Federal Government's response to calls from business and lenders to act to underpin avai...

Upcoming Events

VIC/TAS Regional Awards 2019

Start Time: 6:00pm
Date: Wednesday 24th July 2019

WA: Best Practice Franchise Recruitment

Start Time: 10:30am
Date: Thursday 25th July 2019

About

About the FCA Board of Directors Hall of Fame Hall of Fame Eligibility Criteria

 

Services

Promote your business Have a complaint?

Join

About Membership Member Benefits How to Join FCA Member Standards

 

Partnerships

Advertise your business Sponsorship & Exhibition Testimonials Become an FCA Partner

Learn

FCA Representation Franchising Code of Conduct FCA International

 

Media and Communication

Franchise Review FCA Media ReleasesFranchising in the Media

Franchise Council of Australia

Postal Address

Level 19, 567 Collins Street

Melbourne VIC 3000

Phone: 1300 669 030

Fax: +61 3 9508 0899

 

Website Proudly Developed by:

www.bloomtools.com

 

Women in FranchisingFranchise AcademyFranchise Council of Australia