Editing Franchising (section)

===Australia===
In 2016 there were an estimated 1,120 franchise brands operating in Australia and an estimated 79,000 units operating in business format franchises, with a total brand turnover of approximately $146 billion and a sales revenue of approximately $66.5 billion.<ref name="FA2016">{{cite web|title=Franchising Australia 2016|url=https://www.franchise.org.au/research.html|website=Franchise Council Of Australia|access-date=2 April 2018|archive-date=2 April 2018|archive-url=https://web.archive.org/web/20180402225652/https://www.franchise.org.au/research.html|url-status=dead}}</ref> In 2016 the majority of franchise brands were retailers with the largest segment being non-food retailing, accounting for 26 percent of brands, a further 19 percent of brands were involved in food retailing, 15 percent of franchisors operated in administration and support services, 10 percent in other services, 7 percent in education and training and 7 percent in rental, hire and real estate services.<ref name=FA2016/>

Franchising in Australia commenced in a significant way in the early 1970s under the influence of the franchised US fast food systems such as [[KFC]], [[Pizza Hut]], and [[McDonald's]].<ref>{{cite web|title=Franchising: An Introduction|url=https://www.franchise.org.au/franchising--an-introduction.html|website=Franchise Council Of Australia|access-date=2 April 2018|archive-url=https://web.archive.org/web/20180402225521/https://www.franchise.org.au/franchising--an-introduction.html|archive-date=2 April 2018|url-status=dead}}</ref> It was however underway prior to this and a decade earlier in 1960 [[Leslie Joseph Hooker]], considered a pioneer of franchising, created Australia's first national real estate agency network of [[LJ Hooker|Hooker]] real estate agencies.<ref>{{cite web|title=L J Hooker, the man behind the brand|url=http://www.abc.net.au/radionational/programs/lifematters/lj-hooker-the-man-behind-the-brand/3007464|website=ABC|date=17 March 2011|access-date=2 April 2018}}</ref><ref>{{cite web|title=LJ Hooker's Heritage, History and Brand|url=https://www.ljhooker.com.au/about-us/lj-hookers-heritage-history-and-brand|website=LJ Hooker|access-date=2 April 2018}}</ref>

In Australia, franchising is regulated by the Franchising Code of Conduct, a mandatory [[code of conduct]] concluded under the [[Trade Practices Act 1974]].<ref>{{cite web|url=https://www.legislation.gov.au/Details/F2008C00090%7Ctitle=Trade|title=Federal Register of Legislation – Australian Government|website=Legislation.gov.au|access-date=11 August 2017}}</ref>
The ACCC regulates the Franchising Code of Conduct, which is a mandatory industry code that applies to the parties to a franchise agreement.<ref>{{Cite web |title=Competition and Consumer (Industry Codes—Franchising) Regulation 2014 |url=https://www.comlaw.gov.au/Details/F2014L01472 |url-status=dead |archive-url=https://web.archive.org/web/20150607140933/http://www.comlaw.gov.au/Details/F2014L01472 |archive-date=2015-06-07 |access-date=2015-08-17 |website=Australian Government: ComLaw}}</ref>
This code requires franchisors to produce a disclosure document which must be given to a prospective franchisee at least 14 days before the franchise agreement is entered into.

The code also regulates the content of franchise agreements, for example in relation to marketing funds, a [[Standstill period|cooling-off period]], termination, and the [[resolution of disputes]] by [[mediation]].

On 1 January 2015, the old Franchising Code was repealed and replaced with a new Franchising Code of Conduct.<ref>{{Cite web |last= |title=Competition and Consumer (Industry Codes—Franchising) Regulation 2014 |url=http://www.legislation.gov.au/Details/F2014L01472/Html/Text |access-date=2022-11-05 |website=www.legislation.gov.au}}</ref> The new Code applies to conduct on or after 1 January 2015.

The new Code:
* introduces an obligation under the Code for parties to act in good faith in their dealings with one another
* introduces financial penalties and infringement notices for serious breaches of the Code
* requires franchisors to provide prospective franchisees with a short information sheet outlining the risks and rewards of franchising
* requires franchisors to provide greater transparency in the use of and accounting for money used for marketing and advertising and to set up a separate marketing fund for marketing and advertising fees
* requires additional disclosure about the ability of the franchisor and a franchisee to sell online
* prohibits franchisors from imposing significant capital expenditure except in limited circumstances.

These are significant changes and it is important that franchisors, franchisees and potential franchises understand their rights and responsibilities under the Code.

For further information about the changes to the Code, please see the updated Franchisor Compliance Manual and the Franchisee Manual.

The Code explanatory materials are available from the ComLaw website (link is external).<ref>{{cite web|url=https://www.accc.gov.au/business/industry-codes/franchising-code-of-conduct|title=Franchising Code of Conduct|first=Australian Competition and Consumer|last=Commission|date=11 September 2012|website=Accc.gov.au|access-date=11 August 2017}}</ref>