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Forum
Started Dec 09 2012, 00:58
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Dec 09 2012, 00:58
In Australia an attempt in 1986 to legislate met with opposition from all sectors involved. In December 1990 the Minister for Small Business and Customs appointed a Franchising Task Force to examine and propose mechanisms for the reduction of barriers and impediments to the efficiency and growth of the franchising sector. The terms of reference of the Task Force were to examine and report on the potential of self-regulatory codes for countering marketing failure in franchising, focusing on business format franchising, and to recommend the measures by which industry and Government could enhance the efficiency and growth of the franchising sector.
The outcome of the work of the Task Force was the development of a voluntary and self-regulatory Franchising Code of Practice1 applicable to:
franchisors (including sub-franchisors);
franchisees;
service providers (including banking and financial institutions that provide franchise-related financial support to franchisors and franchisees and publishers or advertising media providers who accept work and publish advertising for the purpose of selling or promoting franchise systems);
advisers (persons, firms or associations such as lawyers, accountants, marketing or management consultants and business brokers who provide advise to franchisors and franchisees); and
State Small Business Corporations.
The Code provided for and regulated:
prior disclosure;
the certification by franchisees of receipt of the disclosure document, of a Guide for Franchisees and of a copy of the Code of Practice;
cooling off periods for franchisees within which they may terminate the franchise agreement;
unconscionable conduct;
alternate dispute resolution; and
contains the requirement that the franchisee be identified as being a franchisee.
To be noted is that the Code did not apply to master franchise arrangements between a foreign franchisor and a domestic franchisee.
Thanks
ID#12578288
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