4Simplified outline of this instrument

4 Simplified outline of this instrument

This instrument prescribes a mandatory industry code for the franchising industry.

The Code requires franchisors, franchisees and prospective franchisees:

(a) to act in good faith towards one another; and

(b) to do certain things, and observe certain cooling‑off periods, before entering into, renewing, extending, transferring or terminating franchise agreements; and

(c) to do certain things in relation to disputes and dispute resolution.

The Code also includes:

(a) requirements about the terms of franchise agreements; and

(b) particular requirements for new vehicle dealership franchise agreements; and

(c) requirements relating to the Franchise Disclosure Register; and

(d) civil penalty provisions for contraventions of requirements.

The Code also confers functions on:

(a) the Australian Small Business and Family Enterprise Ombudsman in relation to the Code; and

(b) the Chairperson of the Australian Competition and Consumer Commission in relation to the Franchise Disclosure Register.