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A franchisor licensing regime could be introduced in 2025. It is essential to unpack the implication of such change for lawyers, writes Emma Jervis.
Change is coming for the franchise industry in Australia. With the impending expiration of the Competition and Consumer (Industry Codes-Franchising) Regulation 2014 (Cth) (the Code) in April 2025, many stakeholders in the franchising sector are speculating about the future of franchising.
They proposed that introducing a franchisor licensing regime could address these concerns and bring about positive changes. But what would such a regime look like, and how would it change the way franchise law is practised in Australia?
What would a franchisor licensing regime look like?
While the precise ins and outs of such a regime are unknown, the ACCC provided some insights into what a franchisor licensing regime could entail in its submission. Specifically:
Professionals in the franchising sector must vigilantly monitor the legal landscape throughout 2024. Keeping clients informed and implementing processes and plans to adapt to the evolving laws are essential. If a licensing regime is implemented, the profession will need to be prepared and responsive.
Specifically:
The answer to this million- (or, more correctly, billion!) dollar question is largely unknown, but monitoring the situation is key. Keeping an eye out for announcements and media releases by the ACCC, the Minister for Small Business (to whom the current review is to be submitted), and the Franchise Council of Australia will enable the profession to prepare for change.
Emma Jervis is the founder of Magnolia Legal.