Post by ACCC

Franchisors and franchisees: are you across the latest changes to franchising laws? On 1 April 2025, new franchising rules came into effect that added further restrictions on when restraint of trade clauses that limit what a franchisee can do after the franchise agreement ends and they leave the system, can apply. As well as complying with the new franchising rules, franchisors already must make sure restraint of trade clauses are not unfair and only do what is reasonably necessary to protect the franchisor's legitimate business interest. 🔔 Franchisors should review existing restraint of trade clauses to make sure they are reasonable and comply with the updated Franchising Code and Australian Consumer Law. 🔔 Franchisees should read restraint clauses carefully before signing, renewing or extending an agreement. They should make sure they understand what restrictions may apply after the agreement ends. Find out more: https://brnw.ch/21x3rfv