Posted by Elizabeth Gore-Jones
on 31 January 2024
The ACCC issued a report in December 2023 called “Unfair Contract Terms in Franchise Agreements – Key Findings of Targeted Compliance Checks on Franchisors”. You can find the report here.
An important disclosure in the report was that the ACCC stated that:
“We consider that the franchising sector is on notice regarding the ACCC’s views about UCTs in franchise agreements.”
The ACCC gave the following tips when reviewing their contracts:
1. Consider both points of view.
2. Include counter-balancing terms.
3. Avoid broad terms.
4. Meet your obligations under the Australian Consumer Law.
5. Be clear.
6. Be transparent.
The Unfair Contract Terms are a priority for the ACCC and, as such, all businesses entering into standard-form contracts (not just franchisors) should be aware and should review their documentation.
For legal guidance, The Franchise & Business Lawyers are here to help.
Contact us for assistance.
