On Dec. 9, 2024, AST GVT registered Competition and consumer (industry codes—franchising) regulations 2024 to replace existing regulations that sunset Apr. 1, 2025.
In addition, AST GVT also published an explanatory statement regarding regulations.
Requirements apply to franchise agreements entered into, transferred, renewed or extended after commencement; Minister to commence review before Apr. 1, 2030.
New regulations commence Apr. 1, 2025, with key provisions like compensation requirements for non-vehicle dealerships delayed until the later date of Nov. 1, 2025.
On Oct. 9, AST GVT issued draft on franchising industry code.
AST GVT published Exposure draft - competition and consumer (industry code - franchising) regulations 2024, explanatory statement, information paper re the same.
Follows AST GVT Aug. 2023 opened review of franchising code of conduct, #182151.
Background
The draft regulations remake the Franchising code of conduct to implement the government response to the review of the Franchising code of conduct (#182151).
In addition, they make amendments to update and clarify various provisions.
Overview of Exposure Draft
The instrument prescribes a mandatory industry code for the franchising industry.
It identifies specific objectives, including addressing the power imbalance between franchisors and franchisees and prospective franchisees; improves dispute resolution.
Improve standards of conduct in the franchising sector through better transparency in disclosure obligations, and setting out requirements for franchise agreements.
Code includes the requirements of franchise agreements and particular requirements for new motor vehicle dealership franchise agreements; requirements re the franchise disclosure register, and civil penalty provisions for contraventions of requirements.
Consultation End
The comment period for this consultation closes on Oct. 29, 2024.
Dec. 2024 Regulations Registered
On Dec. 9, 2024, AST GVT registered Competition and consumer (industry codes—franchising) regulations 2024 to replace existing regulations that sunset Apr. 1, 2025.
In addition, AST GVT also published an explanatory statement regarding regulations.
Requirements apply to franchise agreements entered into, transferred, renewed or extended after commencement; Minister to commence review before Apr. 1, 2030.
New regulations commence Apr. 1, 2025, with key provisions like compensation requirements for non-vehicle dealerships delayed until the later date of Nov. 1, 2025.
