A key aspect of the Amendment (Closing Loopholes) Act 2023 is the criminalisation of ‘wage theft’. Wage theft typically refers to employers intentionally underpaying their employees or deliberately failing to provide them with the wages and entitlements they are owed. Previously, underpayments of employees were subject to civil penalties under the Fair Work Act 2009 (Cth) (“Fair Work Act”), but starting from 1 January 2025, intentional underpayment of wages will now be considered a criminal offence.

When you buy a franchise, you essentially buy the right to operate a business that is the same as the other businesses in the franchise network.

What is Franchising?

In order for all of the franchised businesses to essentially be the same, the product or service that is sold by each franchise must be consistent.

To achieve consistency, a franchisor may restrict where you purchase the supplies required to operate your business.

This can sometimes mean that the cost of your supplies (or the cost of goods sold) is higher than it otherwise might be if you were operating an independent business.

Starting Your Own Business vs Buying A Franchise

Franchising has long been considered a highly effective strategy for business growth, particularly in Australia. With over 1,100 franchisors and 70,000 franchisees operating across the country, this business model has become a cornerstone of the Australian economy, contributing more than $135 billion annually and employing around 520,000 people.

For many entrepreneurs, franchising offers a seemingly straightforward path to business expansion, leveraging an established brand and proven operational models to penetrate new markets quickly.

In this article we will consider how the new "Right to Disconnect" law in Australia impacts employees and employers and what factors both employees and employers need to take into account when communicating outside of work hours.

In this blog post, we will delve into some of the key amendments made to the Fair Work Act 2009 (Cth) ("Fair Work Act") under the Secure Jobs, Better Pay Act 2022 (Cth) ("SJBP"). Our aim is to provide an understanding of the implications of these changes, exploring their direct impact on employee rights and the obligations faced by employers.

Selling a franchise business in Australia can be a complex process, especially when it comes to understanding the legal and financial aspects involved.

In this article we'll explore how to navigate the legal and financial aspects of selling your franchise business in Australia. From understanding how the Franchising Code of Conduct and your franchise agreement apply to the sale as well as considering the value of the franchise business, we will provide you with information that will help to make the journey smoother.

Are you thinking of buying a franchise? It’s an exciting proposition that can bring both rewards and risks. Before you dive in and make a commitment, it’s crucial to carefully consider all the elements involved.

It is a well established principle of Australian law that businesses that illegally exploit their employees can face serious penalties under the Fair Work Act 2009 (Cth) (“Fair Work Act”). It should therefore be unsurprising that franchisees who have engaged in behaviour that illegally disenfranchises their workers can be subject to penalties from the Fair Work Commission.