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.

Dealing With Unfair Contract Terms

Having just read an article about draft legislation to extend the unfair contract term regime to insurance contracts, I was reminded that laws relating to unfair contract terms in the Australian Consumer Law have been around since 2010 in respect of standard form consumer contracts and since November 2016 in respect of standard form small business contracts. Despite these laws applying to standard form small business contracts for nearly 3 years, there are still much confusion in this area of law.

The Cheesecake Shop Underpayment

In a recent case, the Federal Court of Australia awarded a pastry chef one of Australia’s biggest payouts for underpayment of wages. In formulating the decision, the Court took into account the franchisee’s exploitative actions along with the severe mistreatment of the employee.