Part 1Preliminary

Part 1 Preliminary

1 Name of code

This code is the Franchising Code of Conduct.

2 Purpose of code

The purpose of this code is to regulate the conduct of participants in franchising towards other participants in franchising.

3 Definitions

(1) In this code:

ABN has the same meaning as it has in the A New Tax System (Australian Business Number) Act 1999.

associate, for a franchisor, means a person:

(a) who:

(i) is a director or related body corporate, or a director of a related body corporate, of the franchisor; or

(ii) for a franchisor that is a proprietary company — directly or indirectly owns, controls, or holds with power to vote, at least 15% of the issued voting shares in the franchisor; or

(iii) is a partner of the franchisor; and

(b) whose relationship with the franchisor is relevant to the franchise system, including supplying goods, real property or services to a franchisee.

disclosure document has the meaning given by clause 6.

franchise includes the following:

(a) the rights and obligations under a franchise agreement;

(b) a master franchise;

(c) a subfranchise;

(d) an interest in a franchise.

franchise agreement has the meaning given by clause 4.

franchisee includes the following:

(a) a person to whom a franchise is granted;

(b) a person who otherwise participates in a franchise as a franchisee;

(c) a subfranchisor in its relationship with a franchisor;

(d) a subfranchisee in its relationship with a subfranchisor.

franchise system includes a business system in which a franchisor grants a franchise to a franchisee.

franchisor includes the following:

(a) a person who grants a franchise;

(b) a person who otherwise participates in a franchise as a franchisor;

(c) a subfranchisor in its relationship with a subfranchisee;

(d) a master franchisee in a master franchise system;

(e) a master franchisee in its relationship with a franchisee.

interest in a franchise includes a legal or beneficial interest in: