Commonwealth Numbered Regulations Commonwealth Numbered Regulations
Select Legislative Instrument No. 168, 2014
I, General the Honourable Sir Peter Cosgrove AK MC (Ret'd), Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following regulation.
Peter Cosgrove
Governor-General
By His Excellency's Command
Bruce Billson
Minister for Small Business
Contents
1............ Name................................................................................................... 1
2............ Commencement................................................................................... 1
3............ Authority............................................................................................. 1
4............ Code of conduct.................................................................................. 1
5............ Transitional--clause 8......................................................................... 1
6............ Transitional--continued appointment of mediation adviser................. 2
Schedule 1--Franchising Code of Conduct 3
Part 1--Introduction 3
Division 1--Preliminary 3
1............ Name of code...................................................................................... 3
2............ Purpose of code.................................................................................. 3
3............ Application.......................................................................................... 3
Division 2--Definitions 5
4............ Definitions.......................................................................................... 5
5............ Meaning of franchise agreement........................................................ 9
Division 3--Obligation to act in good faith 12
6............ Obligation to act in good faith........................................................... 12
Part 2--Disclosure requirements before entry into a franchise agreement 14
Division 1--Application 14
7............ Application of Part--master franchisors........................................... 14
Division 2--Disclosure document 15
8............ Franchisor must maintain a disclosure document.............................. 15
9............ Franchisor to give documents to a franchisee or prospective franchisee.. 16
10.......... Franchisee or prospective franchisee to give advice to franchisor before entering into franchise agreement 18
Division 3--Information statement 20
11.......... Franchisor to give information statement to prospective franchisee.. 20
Part 3--Franchise agreements 21
Division 1--Application 21
12.......... Application of Part--master franchisors........................................... 21
Division 2--Franchisor's obligations 22
Subdivision A--Disclosure obligations 22
13.......... Copy of lease etc............................................................................... 22
14.......... Copy of other agreements................................................................. 23
15.......... Copy of financial statements............................................................. 24
16.......... Disclosure document......................................................................... 25
17.......... Disclosure of materially relevant facts............................................... 25
Subdivision B--Notification obligations 28
18.......... End of term arrangements................................................................. 28
Subdivision C--Record keeping obligations 28
19.......... Keeping certain information and documents...................................... 28
Division 3--Terms of franchise agreement 30
20.......... Prohibition on release from liability etc............................................. 30
21.......... Jurisdiction for settling disputes........................................................ 30
22.......... Costs of settling disputes.................................................................. 31
23.......... Effect of restraint of trade clause if franchise agreement not extended 31
Division 4--Transfer of franchise agreement 33
24.......... Request for franchisor's consent to transfer...................................... 33
25.......... Franchisor's consent to transfer........................................................ 33
Division 5--Termination of franchise agreement 36
26.......... Termination--cooling off period....................................................... 36
27.......... Termination--breach by franchisee................................................... 36
28.......... Termination--no breach by franchisee.............................................. 37
29.......... Termination--special circumstances................................................. 38
Division 6--Miscellaneous 39
30.......... Capital expenditure............................................................................ 39
31.......... Marketing and advertising fees......................................................... 39
32.......... Disclosure of former franchisee details............................................. 40
33.......... Association of franchisees or prospective franchisees...................... 40
Part 4--Resolving disputes 41
Division 1--General 41
34.......... Internal complaint handling procedure.............................................. 41
35.......... Resolving disputes............................................................................ 41
36.......... When a party is taken to be trying to resolve a dispute...................... 41
37.......... Right to bring proceedings unaffected............................................... 42
Division 2--Internal complaint handling procedure 43
38.......... Notification of dispute....................................................................... 43
39.......... Mediation.......................................................................................... 43
Division 3--Code complaint handling procedure 45
Subdivision A--Notification of dispute 45
40.......... Notification of dispute....................................................................... 45
Subdivision B--Mediation 45
41.......... Mediation.......................................................................................... 45
42.......... Termination of mediation.................................................................. 46
43.......... Costs of mediation............................................................................ 46
Division 4--Mediation appointments 48
44.......... Mediation adviser.............................................................................. 48
45.......... Mediator............................................................................................ 48
Annexure 1--Disclosure document for franchisee or prospective franchisee 49
1............ First page.......................................................................................... 49
2............ Franchisor details.............................................................................. 50
3............ Business experience.......................................................................... 51
4............ Litigation........................................................................................... 52
5............ Payments to agents............................................................................ 53
6............ Existing franchises............................................................................ 53
7............ Master franchises.............................................................................. 54
8............ Intellectual property........................................................................... 55
9............ Franchise site or territory.................................................................. 56
10.......... Supply of goods or services to a franchisee...................................... 57
11.......... Supply of goods or services by a franchisee..................................... 58
12.......... Supply of goods or services--online sales....................................... 58
13.......... Sites or territories.............................................................................. 59
14.......... Other payments................................................................................. 59
15.......... Marketing or other cooperative funds............................................... 61
16.......... Financing.......................................................................................... 62
17.......... Unilateral variation of franchise agreement....................................... 62
18.......... Arrangements to apply at the end of the franchise agreement............ 63
19.......... Amendment of franchise agreement on transfer of franchise............ 65
20.......... Earnings information......................................................................... 65
21.......... Financial details................................................................................. 66
22.......... Updates............................................................................................. 67
23.......... Receipt.............................................................................................. 67
Annexure 2--Information statement for prospective franchisee 68