On 1 January 2015 the Franchising Code was repealed and replaced with the New Code. References to the Franchising Code of Conduct in the legislation are now references to the New Code.
The changes made in the New Code Disclosure Document include provisions that make changes to:
- the common law obligation to act in good faith;
- marketing funds be kept separate
- marketing funds only be used for purposes disclosed .
- franchisors required to contribute to marketing funds;
- limits significant capital expenditure ;
- limits end of term restraint of trade covenants ;
- limits nominating a jurisdiction for dispute resolution ;
- requirew a new ‘information statement’ in addition to the disclosure document;
- expands the information to be given in a disclosure document
- expands the circumstances in which penalties may be imposed on franchisors for breaches of the code.
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