ACCC Report Requires Franchisors To Consider The Quality Of Information Provided In Disclosure Documents

Before completing the annual update of your disclosure document, Franchisors need to be aware of the recent ACCC report regarding the inadequacies uncovered by compliance checks in the food services sector. The findings highlighted that many franchisors are not providing sufficient details in their disclosure documents. Inadequate disclosure may amount to breaches of the Franchising Code of Conduct.

Landlords Unreasonably Withholding Consent to Sub-Lease: Masters Home Improvement v Aventus

Most franchise systems that have franchisees operating a retail site will be subject to State based retail shop leases legislation. Masters Home Improvement Australia Pty Ltd v Aventus Cranbourne Thompson Road Pty Ltd [2019] VSC 428 is a recent Victorian Supreme Court decision regarding a landlord withholding consent to grant a sublease over part of an empty retail space subject to the retail shop leases legislation in Victoria. Justice Croft found in favour of the tenant, Masters, and held that the commercial interests claimed by the landlord, Aventus Cranbourne, to justify the refusal to consent to the sublease were unreasonable.

Calling all Franchise Stakeholders – Have Your Say By 20th September

28 Aug 2019

On Friday 23 August 2019, the Franchising Taskforce (established by the Government to examine the feasibility and implementation of recommendations proposed in the Parliamentary Joint Committee on Corporations and Financial Services’ Fairness in Franchising report) released an Issues Paper.

The Issues Paper invites input from the franchising community by asking 23 specific questions regarding 7 draft policy principles developed by the Taskforce.

A Reminder To Franchisors – Disclosure Document Update Season

20 Aug 2019

Franchisors, the time has come to review and update your Disclosure Document for the financial year ending 30 June 2019.

The Franchising Code of Conduct requires franchisors to update their Disclosure Documents within four months of the end of their financial year. For most franchisors, this will mean their Disclosure Documents must be updated by 31 October 2019.