Franchising is one of the most used and least understood legal terms in the commercial marketplace.

But beware!

The consumer watchdog - the ACCC - diligently enforces the Franchising Code of Conduct which was established in 1998 specifically to codify the requirements of a franchising system and also applies the Trade Practices Act which was established in 1974 as an enforcement tool, So the franchise market is carefully regulated.

One comment made by Michael Shaper of the ACCC at the recent franchising symposium in Perth was that well informed franchisees are usually good franchisees!

The sanctions applicable to franchise agreements are often based on unconscionable conduct or misleading and deceptive conduct which further highlights the need for transparency.

445 Complaints were received by the ACCC between January and September 2009 . The most common complaints dealt with contractual disputes, misleading representations and the failure to properly disclose information.

The need for proper legal advice when establishing a Franchise business or becoming a Franchisee is crucial so why not utilise the the Legal Information Desk service which is free for 20 minutes of legal advice.

Related Havilah Legal service(s): Commercial Litigation