Alert! Changes to the Franchising Code in 2025 – Leo Cussen Centre for Law

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Alert! Changes to the Franchising Code in 2025

Alert! Changes to the Franchising Code in 2025

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The Franchising Code of Conduct is set for amendment with the introduction of new rules to take effect from 1 April 2025. This session will discuss the impact of the upcoming changes to the Code as well as covering the ongoing issues for franchisors and franchisees. 

The changes are significant and include:

  • Redirecting the focus of the Code onto the power imbalance between franchisors and franchisees
  • Compensation for franchisees for the early termination of the franchise agreement
  • Increases in the severity of penalties
  • Expansion of the 7-day termination right of Franchisors to cover contraventions of the Fair Work and Migration Laws
  • Changes affecting the commencement of the franchise agreement regarding disclosures, cooling-off, and time restrictions for franchisors.

Make sure you understand the new rules and requirements that will govern franchise agreements until the next renewal.