Franchisees must in future be presented with plain-English documents that set out clearly their rights and responsibilities under changes intended to clean up the notoriously conflict-ridden sector.
In the biggest changes to the franchising code of conduct in its 12-year existence, franchisors must make clear to franchisees that there may be unilateral contract variations, unforeseen capital expenditures and confidentiality restrictions. The new rules will also require franchisors to spell out the process for the sale of a business.
Rule changes covering good faith or unconscionable conduct have not been included in the code, however.
