Posted by Elizabeth Gore-Jones
on 11 October 2024
The Government has released the draft of the anticipated new Franchising Code of Conduct.
It is open for comment.
The proposed commencement date is 1 April 2025
The Franchising Code of Conduct exposure draft has been released by the Government to implement the Governments response to the independent review of the Franchising Code of Conduct.
Current Franchisee disclosure on renewal
One exciting development is that a prospective Franchisee can opt out of being provided with the updated disclosure document if it recently had another Franchise Agreement with the Franchisor the same or substantially the same as the new Franchise Agreement and the business is the same or substantially the same as the business under the Franchise Agreement.
Certain conditions must be met but this may make the renewal process a lot easier.
No more Key Facts Sheets
Another exciting development appears to be that the key facts sheet will no longer be required and we will be reverting back to merely providing a disclosure document and a copy of the code as part of the disclosure process.
This supports the position of the Government to reduce the red tape which has, in recent years, been apart of the Franchise industry.
The Franchise & Business Lawyers will keep you updated and if you have any questions in the meantime please reach out to us.
