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Vol 8 (2010) - Issue 5

Australia - Franchising Code amended yet again!

Philip Colman, Principal, Mason Sier Turnbull Lawyers, Melbourne, Australia

The regulation of franchising in Australia through the Franchising Code of Conduct is well accepted throughout the franchising sector, including franchisors on whom the Code imposes substantial obligations. The most recent amendments to the Code seek to enhance the protection it offers to franchisees and prospective franchisees. This article sets out the most important changes and how these may impact on franchisors and franchisees.

EU Report

Cathy Salz, Associate, Field Fisher Waterhouse LLP, London

This EU Report provides an update on EU harmonisation efforts and Commission proposals which could impact on business generally and franchising in particular. It further analyses a recent UK case which upholds post-termination restrictions imposed on a franchisee, confirming a principle established in European case law.

Franchising - To regulate or not to regulate

Stewart Germann, Partner, Stewart Germann Law Office, Auckland and Alexia Christie, Partner, Webber Wentzel, Cape Town

New Zealand has no mandatory franchising laws and the franchising code of practice which all members of the Franchise Association of New Zealand have to comply with is working well. In contrast, South Africa has recently embraced the Consumer Protection Act by publishing regulations to govern franchising which will affect the franchising industry. Franchising experts in New Zealand and South Africa provide more details in this article.

Vicarious liability update

David W. Oppenheim, Partner and Felicia A. Nadborny, Associate, Kaufmann Gildin Robbins & Oppenheim LLP, New York

Franchisors can be subject to claims for vicarious liability to a third party based on the acts, errors or omissions of its franchisee or its franchisee’s employee based largely on the extent of control which the franchisor exercises over the franchisee and the extent to which the franchisee was acting with the franchisor’s actual or apparent authority. This report highlights recent vicarious liability cases involving prominent U.S. based franchisors.