Franchising in Australia is tightly controlled under the Trade Practices Act 1974 (“TPA”) through the mandatory operation of the Franchising Code of Conduct (“Code”).

The Code applies in respect of certain licensing arrangements involving the operation of businesses that offer goods and services in Australia. Whilst the Code does not apply to all licensing arrangements, care must be taken to make certain that if the Code does apply, it is complied with. For example, simply calling an arrangement a “distribution agreement” will not avoid application of the Code if the arrangement in fact contains the prescribed elements of a franchise under the Code. Failure to comply with the Code can result in action against both companies and individuals under the TPA and possibly also the Corporations Act 2001.

Other consumer and competition protection provisions of the TPA also require consideration in any franchise or other form of licensing, distribution or supply agreements.

Our practitioners are well versed in the regulatory requirements as well as the practicalities of conducting business under the relevant legislative regime. Our experience with a number of large, national franchisors provides us with the ability to advise not only start up franchisors, but prospective and existing franchisees in relation to the intricacies of the legal documentation that governs franchise operations.

Based upon our firm’s clear focus on commercially realistic business outcomes for clients, we provide advice on the full range of legal issues related to the franchising sphere.