Changes to Franchising Code of Conduct from 1 March 2008
Damien Wurzel of Cornwall Stodart reports on the significant changes to the Franchising Code of Conduct which came into force from 1 March 2008. According to Damien Wurzel, these reinforce the heavy onus placed on Franchisors to provide proper disclosure to Franchisees.
The major effects of these changes are:
* the content of disclosure documents and internal procedures will need to be updated and additional information provided to ensure compliance with new mandatory requirements; and
* Franchise agreements need to be reviewed to ensure they meet new restrictions under the Code.
Franchisors beware! Recent Changes to the Franchising Code