By Meridian Lawyers
Franchising Code of Conduct
(the Code)
The Code is a mandatory code across
Australia that regulates the conduct of
the participants in a franchise system. It is
part of the Competition & Consumer Act
2010 and is regulated by the Australian
Competition and Consumer Commission
(ACCC). Both franchisors and franchisees
must comply with the Code.
Importantly, the Code provides
protection for franchisees in relation
to disclosure documents, cooling off
periods, the management of marketing
funds and dispute resolution. Before
entering into any franchise agreement,
you should be provided with a copy
of the Code, a disclosure statement,
information statement and the franchise
agreement.
Due diligence • Due diligence
Make sure that you conduct due
diligence of the franchise – this is where
you, as the proposed franchisee, have
the opportunity to investigate the
franchise and to satisfy yourself that you
know exactly what you’re paying for. • Franchise and licence agreements
and other contractual matters
• Business structures, restructures,
business and asset protection
• Professional negligence and public
liability claims
• Complaints and demands for
compensation
• Regulatory issues relevant to fitness
professionals and businesses.
Most importantly, before considering
the a franchise, individuals should first
seek the advice of their lawyer and
accountant, both of whom will play an
important role in the process.
Meridian Lawyers’ corporate and
commercial team has dedicated
expertise in the health and fitness
industry and regularly advises gym
businesses and franchisees, and fitness
professionals on a range of matters such
as:
Should you require advice about a
franchise, including undertaking due
diligence, please contact Meridian
Lawyers’ corporate and commercial
Principal Michael Bracken, Special
Counsel Georgina Odell, or Solicitor
Greg Bawden.
This article does not constitute legal advice and does not give rise to any solicitor/client relationship between Meridian Lawyers
and the reader. Professional legal advice should be sought before acting or relying upon the content of this article.
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