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Franchise Law in WA
Franchising involves a business owner (the Franchisor) granting to another person (the Franchisee) the right to replicate their business model and to carry on an independent outlet under their trademarked business name. The Franchisee pays a fee to the Franchisor in return for permission to market and sell their services and products. The Franchisee is also generally required to pay ongoing royalties and agrees to implement set procedures, marketing and management techniques.
The practise of franchising in Western Australia is regulated via the Australian Competition and Consumer Commission (the ACCC) under the Competition and Consumer Act 2010 (The Act) (formerly the Trade Practices Act 1974). The Act embodies the Franchising Code of Conduct, which sets out industry standards relating to disclosure of information, the terms of the franchise agreement and dispute resolution.
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