a u s t r a l i a n f r a n c h i s i n g
Spotlight
on Australia
With its fast growing franchise market
Pursuant to ancillary regulations
worth AU$128 billion and amidst a sunny
prescribed under this legislation
franchisees and franchisors must
climate, great wine and cold beer, the other
comply with a mandatory industry code,
side of the globe is a serious contender for
namely the Trade Practices (Industry
expansion abroad. Tony Garrisson and
Codes – Franchising) Regulations 1998
(Cth), more commonly known as the
Esther Gutnick of Mason Sier Turnbull
Franchising Code of Conduct (‘Code’).
reveal how you can get in and get on with
franchising in Australia
In addition, an independent
Commonwealth statutory authority was
formed in 1995 and acts as a consumer
Franchising in Australia represents a franchisors wishing to expand into
rights protection organisation. Known
dynamic small business sector, which international territories.
as The Australian Competition &
enjoys consistent growth and currently
Consumer Commission, it administers
contributes over AU$128 billion to the Australian franchising law
economy, or approximately 14 per cent The franchising industry in Australia
the Trade Practices Act and has
of Australia’s national gross domestic enjoys a higher standard of regulation,
extensive powers to take action against
product (GDP). and therefore protection, than in most
those who contravene it.
other countries. Even the UK, where
The Australian franchising industry there is no specific franchise law, the
Code changes and their
comprises approximately 960 different British Franchise Association’s code of
effect on foreign franchisors
franchise systems, including both ethics is predominantly a voluntary code
Until now, there has been an
Australian based and foreign systems, of best practice.
exemption under the Code for foreign
and employs 600,000 Australians.
franchisors granted only a single
The Australian franchising sector is
franchise or master franchise directly
The Australian marketplace can thus regulated by federal legislation known into Australia, who were previously not
be a very lucrative one for overseas as the Trade Practices Act 1974 (Cth). subject to the Code’s operation.
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