As franchisors adapt to the Franchising Code of Conduct introduced on 1 April 2025 (the new Franchising Code), we look ahead to the next round of Code changes coming into effect on 1 November 2025.

In this article we look at some of the important changes to the disclosure obligations of franchisors, arising under the new Franchising Code of Conduct, which came into effect on 1 April 2025 ("the new Code"). 

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.

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.

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

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.

When someone refers to an Intellectual Property Agreement, they are referring to an agreement or clause that deals with the creation, use and protection of intellectual property.

There isn't one type of Intellectual Property Agreement. The term "Intellectual Property Agreement" can be a reference to a number of different types of agreements.

What Is Intellectual Property?

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).