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The ACCC comments on Franchising Code of Conduct enforcement priorities

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On 11 October 2015, David Salisbury, General Manager of Consumer and Small Business Strategies at the ACCC spoke at the Legal Symposium at the National Franchise Convention 2015 and reinforced the ACCC’s enforcement priorities.

David stated that the next round of ACCC audits will commence after 31 October 2015 and will focus on confirming whether Franchisors have updated their franchise documents and are complying with their marketing fund obligations.

Franchisors whose financial year ends on 30 June 2015 are required to convert to the new format of Disclosure Document prescribed by the New Franchising Code of Conduct by 31 October 2015, in addition to completing the standard annual update of their Disclosure Document.

Unless 75% of the franchisor’s franchisees in Australia, who contribute to a marketing fund, have voted that the franchisor does not have to comply, Marketing fund financial statements must be audited by 31 October 2015 and a copy must be provided to franchisees by 30 November 2015.

If you have any queries about the above, please feel free to contact Raynia Theodore in our Franchising team by email franchise@mst.com.au or by telephone +61 3 8540 0200.