Franchising in Australia

Trade Practices Act

Franchising in Australia falls under the auspices of the federal Trade Practices Act (TPA), Governing  the conduct of businesses with respect to interstate trade and commerce.

Australia adopted an accompanying Franchising Code of Conduct (the Code) on July 1, 1998 (and amended it effective September 1, 1999, again effective October 1, 2001, and most recently on August 7, 2007, effective March 1, 2008). The most recent amendment contains substantial changes with major impact on franchisors.

Franchising Code of Conduct

The Code effective on July 1, 1998, applying to all franchise agreements or renewals of franchise agreements and concerns the distribution of goods and/or  services in Australia.  Prior, the Code applied to sales of franchises located in Australia, except for a single isolated sale of a franchise. However, on August 7, 2007, the Australian Government deleted this single foreign franchise exemption effective March 1, 2008.