Chapter 3: Good Faith

Introduced under Schedule 1 – Franchising Code of Conduct.

Competition and Consumer (Industry Codes – Franchising) Regulation 2014

Division 3 – Obligation to act in good faith

Clause 6 Obligation to act in good faith

Essential to achieving a ‘best practice approach’ to regulating proper behaviour between franchisors and franchisees has been the need to lay down a general standard of conduct to apply between them.

The issue of a general standard was first raised in recommendation 8 of the Parliamentary Joint Committee on Corporations and Financial Services ‘opportunity not opportunism: improving conduct in Australian franchising’ 2008. It was not adopted to the extent felt necessary but changes were made in the amending regulations of 2010 to reflect the applicability of good faith to the franchising relationship.