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NEW LAW REQUIRES FRANCHISORS TO REVISE AGREEMENT FORMS USED IN AUSTRALIA

By Alexander G. Tuneski and Melinda Upton

Australia recently enacted legislation that will extend an existing regime restricting “unfair contract terms” in consumer contracts to standard form small business contracts, which will include most franchise agreements and ancillary agreements.

This change will require franchisors to carefully review and revise provisions within their standard agreements, as such provisions may be void and unenforceable in agreements that are entered into, amended, extended, or renewed on or after November 12, 2016.

The law will apply to contracts between small businesses that use one party’s standard form of contract. The Australian Competition and Consumer Commission, which will enforce the law, has indicated that it will target the franchising sector, among others, in its compliance activities, noting that, in its view, the balance of power in the relationship between franchisors and franchisees may become more equitable as a result.

Find out more.


PHILIP ZEIDMAN FIRST RECIPIENT OF THE IFA DENNIS WIECZOREK FREE ENTERPRISE AWARD

Philip Zeidman, current International Franchise Association (IFA) general counsel, was honored as the first recipient of the IFA Dennis Wieczorek Free Enterprise Award, named in honor of the contributions to franchising made by the late DLA Piper partner Dennis Wieczorek, IFA’s former general counsel. The award recognizes and honors a person or organization that has contributed extensively to advancing franchising and the free enterprise system. It will be presented during the IFA’s Annual Convention, February 20-23, 2016, in San Antonio. Read more »


Published by DLA Piper LLP (US)
Copyright © 2015 DLA Piper LLP (US)
All Rights Reserved

This bulletin is intended as a general overview and discussion of the subjects dealt with. It is not intended, and should not be used, as a substitute for taking legal advice in any specific situation. DLA Piper will accept no responsibility for any actions taken or not taken on the basis of this publication. Pursuant to applicable Rules of Professional Conduct, it may constitute advertising.

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NOVEMBER 24, 2015


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To learn more about our franchise work worldwide, please contact:

Richard G. Greenstein
Chair, Franchise and Distribution Practice

Barry M. Heller
Editor, FranCast

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