If you’re considering buying into a franchise, then the franchising code of conduct is an important read. But what exactly is it, where can you find it and what’s it all about? Read through our franchising code of conduct cheat sheet below to find out more about this important document.
Who is the ACCC?
The franchising code of conduct is regulated by the Australian Consumer and Competition Commission (the ACCC). The ACCC is an independent statutory agency whose primary role is to promote fair trading for the benefit of Australian consumers. Their job is to strengthen the Australian economy and protect the Australian consumer by monitoring and regulating competition within the Australian marketplace.
The ACCC has 4 main goals:
- to promote competition
- to protect the interest of consumers by supporting fair trade
- to promote the efficient use of monopoly infrastructure
- to increase engagement with business and consumer groups
For more information about the role of the ACCC click here (https://www.accc.gov.au).
What is the Franchising Code of Conduct?
The ACCC is in charge of enforcing the Franchising Code of Conduct. It is a mandatory industry code which applies to all parties of a franchise agreement. The code has been around for a long time, but the old code was repealed in January 2015 and replaced with the newest version which you can find here (https://www.comlaw.gov.au/Details/F2014L01472).
The code itself lists the rights and obligations as a franchisee and the rights and obligations of the franchise owner. It includes a list of information that the franchisor is required to disclose to you as well as everything that should be contained within your franchise agreement documentation.
The code also includes a comprehensive dispute resolution process in the case of disputes between parties.
The code is not designed to take the place of professional financial, legal, or business advice, but is an excellent resource for both franchisees and franchisors as they navigate the business world.
Are you interested in owning a Kwik Kopy franchise? We are one of Australia’s top rated franchises. Contact us now to find out more.
