A must read for all prospective franchisees – The Franchisee Manual – has been launched today by the Australian Competition and Consumer Commission.
"The Franchisee Manual is a comprehensive publication that will assist people thinking about buying a franchise and also existing franchisees to understand and comply with the Franchising Code," ACCC Victorian Regional Director, Mr Bob Weymouth, said.
The manual was launched by Mr Weymouth, at the presentation of the Australian Home-Based Business awards by Mr Joe Helper, the Victorian Small Business Commissioner, at the Victorian Small Business Expo.
"Franchising is one of the fastest growing industries in Australia and is a significant contributor to the small business sector and the Australian economy," Mr Weymouth said.
"As the regulator of the franchising industry, the ACCC is committed to educating people who are considering buying a franchise, and existing franchisees, about the Franchising Code of Conduct and their associated rights and obligations."
The manual outlines the various stages of the franchising relationship:
- before the purchase
- when evaluating and signing the agreement, and
- throughout the ongoing relationship.
"As part of a continued strong focus on educating prospective and existing franchisees and achieving high volume compliance with the code, the ACCC has produced The Franchisee Manual - which is an essential tool for all franchisees," Mr Weymouth said.
"The manual will assist prospective franchisees in understanding what franchising is all about, how to ensure they have researched an opportunity thoroughly and be aware of their rights and obligations when dealing with their prospective franchisor.
"The manual will assist existing franchisees in the exercise of due diligence when they are considering making changes to the franchise or any related agreements, and in understanding their ongoing rights and obligations with their franchisor."
The manual covers topics such as:
- what is franchising
- the application of the Franchising Code of Conduct
- advantages, disadvantages and responsibilities of being a franchisee
- steps that should be taken before choosing a franchise
- how to research and verify information about a franchise
- steps that should be taken to understand and evaluate a franchise agreement
- how to resolve a dispute
- frequently asked questions.