When contemplating the purchase of a franchise from a non-Australian brand, in addition to the usual issues, there is an extra layer of specific matters that should be considered.
The recent conviction of the founder of the Banjo’s Bakery Group, Mark Saxby, for defrauding the Commonwealth highlights the ramifications of failing to declare all income in taxation returns.
The expert panel appointed by the government to report on strengthening the unconscionable conduct provisions in the Trade Practices Act and further regulation of the franchising sector issued its report on 3 March 2010. Its a mixture of good and bad news for franchisors.
Plans to amend the Franchising Code of Conduct and Trade Practices Act were announced by the Federal Government on Thursday 5 November. These will include amendments in relation to unconscionable conduct throughout the contracting process, but not a broad and general reference to good faith as recommended by the Joint Committee in December 2008.