The Competition and Consumer (Industry Code - Franchising) Regulations 2024, were made on 5 December 2024 and come into effect on 1 April 2025. You can read the regulations here.

Last week while I was busy ensuring that our franchisor clients had updated their profile on the Franchise Disclosure Register, the Federal Government released its consultation paper on a licensing regime for the franchising sector.

As foreshadowed in its response to the 2023 Review of the Franchising Code of Conduct (the Code), the Government has proposed amendments to the current termination provisions of the Code.

The Exposure Draft of the Franchising Code of Conduct has been released, with the Government inviting public feedback until 29 October 2024.

In our last article I considered the proposed changes to the Franchising Code of Conduct (the Code) arising from the 2023 Review of the Scope of the Regulation of the Code.

In this article I will provide an overview of the proposed changes to the requirements "Before a Franchisee Enters into a Franchise Agreement", and their implications for franchisors and franchisees.

The Exposure Draft for the 2025 update of the Franchising Code of Conduct (which is expected to come into force on 1 April 2025) has been released by the Australian Federal Government (the Government).

As part of the Australian Federal Government's Competition Review, Treasury is considering how businesses can protect confidential information or trade secrets without the use of non-disclosure or confidentiality clauses, such as through the use of patents.

In this article we examine the legal definition of trade secrets and how trade secrets are currently protected.

Franchise agreement termination is a complex area. In this article we look at the options available to franchisors and franchisees who want to exit a franchise agreement early.

Under the terms of a franchise agreement, a franchisee is given the right to operate the franchise business for a period of time. When the time period expires, the franchise agreement "expires". [What is a Franchise Agreement?]

A franchisor may terminate a franchise agreement early (that is, before the franchise agreement expires), if the franchisor follows the procedures set out in the franchise agreement and the Franchising Code of Conduct (the Franchising Code). [What is the Franchising Code of Conduct?]

If a franchise agreement contains provisions allowing a franchisee to terminate the franchise agreement, a franchisee may terminate a franchise agreement early if the franchisee follows the provisions set out in the franchise agreement.

There are also limited circumstances where a franchisor or franchisee can terminate a franchise agreement at common law. We have not dealt with these circumstances in this article.

Termination Under the Franchising Code of Conduct
Termination Clauses in Franchise Agreements
Legal Procedures for Terminating A Franchise Agreement

On 7 May 2024, the Minister for Small Business, the Hon Julie Collins MP, released the Australian Government's response to the Independent Review of the Franchising Code of Conduct. In this article we consider the recommendations of the Independent Review together with the Government's response.

One of the disadvantages of buying a franchise is the lack of independence or autonomy in operating the franchise, and the restrictions on decision-making [The advantages and disadvantages of franchising]. How much autonomy a franchisee has in operating their franchise business, will depend on the franchisor, the business operation that the franchisee is wanting to do differently and the reasons why the franchisee is wanting to depart from the franchise offering. While there is a case to be made for some franchisee autonomy, this needs to be balanced with brand consistency . 

What is Franchise Autonomy?
Can Franchisees Adapt Operational Procedures?
Are Franchisees Able to Introduce New Products or Services?
What Level of Autonomy do Franchisees Have in Local Marketing?
Can Franchisees Negotiate with Suppliers Independently?
Challenges of Franchisee Autonomy
Strategies for Balancing Autonomy and Consistency
The Future of Franchisee Autonomy