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Australia’s franchising Code of conduct sends a strong message to Ray White Real Estate franchisor. Don’t you come back now or we’ll make you promise again.
The ACCC pursuit of Ray White RE sends a clear message to the franchising industry and the legal profession in Australia that the Code is not to be toyed with. The franchisor had blatantly terminated a country franchise without reason.
The Franchising Code of Conduct provides that, unless there are special circumstances, a franchisor cannot end a franchise agreement without advising the franchisee of any alleged breaches of the agreement and without providing the franchisee time to remedy any breaches. Acting ACCC chairman, Michael Schaper
Down came the chop to the Ray White RE neck;
In addition to resolving the matter with Mr Edwards, Ray White is required to set up a trade practices law compliance program and for senior staff to undertake practical training focused on requirements under the code.
No doubt franchisors across Australia are reeling in fear at a clear ACCC message; ‘Don’t mess with the Code or we will make you read it’.