Posted by Elizabeth Gore-Jones
on 13 August 2019
ASQA has released new requirements for RTO third party arrangements.
They may trigger the obligation for RTOs to be a franchisor under the Franchising Code of Conduct.
When following the ASQA requirements, an RTO may also be required to comply with the Franchising Code if:
1. The RTO must tell its third party providers how to operate or market their business;
2. The third party must undertake advertising using the RTO's logo, trade mark etc;
3. The third party is required to pay the RTO.
RTOs with third party arrangements should seek urgent assistance to ascertain if they trigger the Franchising Code. A failure to comply with the Franchising Code could result in significant penalties.
Please feel free to contact us for further assistance.
Author:Elizabeth Gore-JonesAbout: Elizabeth specialises in franchising law. She lectures at Bond University PLA in franchising, she sits on the Queensland Law Society Franchising Committee, she is a past member of the Women in Franchising committee and a past member of the Franchise Council of Australia.
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