The regulation of Unfair Contract Terms is about to change. In November 2023 the 12 month transition period for the Treasury Laws Amendment (More Competition, Better Prices) Act 2022 (the Act) will come to an end.

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.

Franchising in Australia is heavily regulated.

Starting Your Own Business versus Buying a Franchise. Which is the better option?

Introduction
Advantages
Investment and Financial Considerations
Marketing and Branding
Operations and Management
Risk and Reward
Takeaways

As a franchisee, it is important to be aware of the financial health of your franchisor.

While there are certain pieces of information that must be included in the franchisor disclosure document, access to detailed information about a franchisor’s finances may be limited. This can leave you vulnerable if your franchisor suddenly becomes insolvent.

In this article we will discuss why it’s important as a franchisee to stay informed about your franchisor’s financial standing and what rights you have should your franchisor become insolvent.

Overview of Franchisor Insolvency

Rights and obligations arising from Franchisor Insolvency

Administration and Liquidation arising from Franchisor Insolvency

Marketing Funds

Takeaways

Are you thinking of buying a franchise? It’s an exciting proposition that can bring both rewards and risks. Before you 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.

The ACCC announced on 6 October 2022 that it had issued Jim's Group Pty Ltd with two infringement notices and that Jim's Group Pty Ltd had paid $24,420.00 in penalties.

The infringement notices related to an alleged failure to comply with the Franchising Code of Conduct and an alleged failure to comply with the Australian Consumer Law. 

We have set out below a number of the approaching Key Franchise Dates, related primarily to a franchisor's end of financial year reporting and disclosure obligations.