Why the Code of Conduct is relevant to franchisees

Sarah Stowe
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Another document to consider? Yes, there are plenty of important documents to review when you’re buying a franchise. However, while this Code of Conduct forms the foundation of the franchisee/franchisor relationship, it isn’t essential that you read the document from cover to cover.

A franchise lawyer will know which are the most important elements and details. It is though worth taking the time to understand how it affects you as a potential franchisee, and once you are in business.

The franchisor must provide potential franchisees with certain documents before franchise buyers can sign an agreement; there is a cooling off period too.

The Code also includes the structure of a franchise agreement, it provides a process for mediation in a dispute, it prescribes how the termination of a franchise agreement can occur.

One of the crucial elements it includes is the overriding commitment to good faith, from both parties.

The Australian Competition and Consumer Commission (the ACCC) oversees the Franchising Code of Conduct.

Check this out, and listen to our other podcasts in this series that go into more detail on key documents including the franchise agreement, and the disclosure document.

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