Franchising, Licensing & Distribution

KHQ News & Insights

Franchise systems benefit from competition law changes

Profit opportunities for franchise systems arising from changes to competition laws When your franchise system was established, considerable thought was given to the profit centres it would create and achieving from them a return satisfactory to the system and/or its shareholders, which at the same time provided an acceptable income to your franchisees to justify … Read more

Franchise update: Vulnerable Workers Bill passes

The Fair Work Amendment (Protecting Vulnerable Workers) Bill 2017 passed on 5 September 2017. Despite efforts by the Franchise Council of Australia and others in the franchising industry, the amendments targeted at making franchisors liable for Fair Work Act contraventions by their franchisees were passed largely in their original form. Under the amendments a franchisor … Read more

Proposed Australian workplace law changes affecting franchisors

By Jessica McNamara and Iain Irvine The 7-Eleven scandal, which involved unlawful conduct by franchisees such as requiring employees to pay back a significant amount of their wages and falsely recording data, sparked a thorough investigation by the Fair Work Ombudsman. Following the release of the Ombudsman’s report, the Australian government announced its policy to … Read more

Franchise Code: ACCC seeks penalties for alleged breach

It is mandatory under the Franchising Code of Conduct for a franchisor to disclose relevant business experience to prospective franchisees, including information about previous insolvency events. For the first time, the Australian Competition and Consumer Commission (ACCC) has sought penalties for breaches of the Code in the Federal Court. The revised Code (which came into … Read more

Here we go again …

As Franchisors and advisors we have just undergone a year of significant change in bedding down the new requirements of the Franchise Code and redrafting our suite of documents. While much remains unanswered about the new regime, including the practical ramifications of the “good faith” relationships parties now must observe, the changes seem somehow more … Read more