Franchise and Licensing Practice partner Robert Smith has co-authored an article in Law360 detailing the new compliance hurdles that U.S. franchisers are now facing in Australia. An influx of successful U.S. fast food franchise chains into the local marketplace led to the rise in popularity of franchising as a format for creating and expanding businesses in Australia. Franchising is now a mature sector of the Australian economy, with some 90,000 franchised outlets spread throughout most Australian industries. Recent Franchise Code changes have been released and U.S. franchisors with operations in Australia should give immediate attention to the reforms. The authors detailed the key changes impacting U.S. franchisors – timing of updates, key facts sheets, franchise agreement changes, and disclosure process changes.
"These changes will affect disclosure and dispute resolution processes and the form of franchise documents used by U.S. franchisers who have franchisees in Australia."