ACCC crackdown on food industry franchisors

The Australian Competition and Consumer Commission has announced that it will be cracking down on food industry franchisors, particularly to meet their information disclosure obligations under the mandatory Franchising Code of Conduct. The announcement coincides with the outcome of a Federal Court decision on the obligation of ‘good faith’ which applies between parties to a franchise agreement. This article addresses key non-compliance risks for food industry franchises who are to be subject to further scrutiny.