An interesting change to the Franchising Code of Conduct from 1 January, 2015 relates to jurisdictions for settling disputes. A franchise agreement must not contain a clause which requires an action in relation to a dispute to be brought outside of the State or Territory in which the franchised business is operated. The provision then goes on to state that a franchise agreement cannot require mediation to be brought outside of the State or Territory in which the franchised bus...

The current Franchising Code of Conduct states that nothing in the Code limits an obligation to act in good faith. So, while the provision really didn't add anything, it certainly didn't detract from the evolving law of good faith. At clause 6 of the new Franchising Code of Conduct (coming into effect from 1 January, 2015) it is clear that each party must act in good faith to the other and that the meaning of "good faith' is basically the law as it evolves. ...

The new Franchising Code of Conduct will start on 1 January, 2015 as anticipated. Although, the Code includes a transitional arrangement for the updating of Disclosure Documents, a franchisor may need to change its franchise agreement from 1 January, 2015 and those changes may need to be reflected in a new Disclosure Document.  As such, the transitional arrangements may not mean a franchisor is relieved from updating the Disclosure Document from 1 January, 2015. Impo...