Trade Practices (Industry Codes — Franchising) Amendment Regulations 1999 (No. 1)
Statutory Rules 1999 No. 188
I, WILLIAM PATRICK DEANE, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under the Trade Practices Act 1974.
Dated 25 August 1999.
WILLIAM DEANE
Governor-General
By His Excellency’s Command,
PETER REITH
Minister for Employment, Workplace Relations
and Small Business

Trade Practices (Industry Codes — Franchising) Amendment Regulations 1999 (No. 1)1
Statutory Rules 1999 No. 1882
made under the
Trade Practices Act 1974

Contents
	Page
	1	Name of Regulations	2
	2	Commencement	2
	3	Amendment of Trade Practices (Industry Codes — Franchising) Regulations 1998	2
Schedule 1	Amendments	3

1	Name of Regulations
		These Regulations are the Trade Practices (Industry Codes — Franchising) Amendment Regulations 1999 (No. 1).
2	Commencement
		These Regulations commence on gazettal.
3	Amendment of Trade Practices (Industry Codes — Franchising) Regulations 1998
		Schedule 1 amends the Trade Practices (Industry Codes — Franchising) Regulations 1998.

Schedule 1	Amendments
(regulation 3)
[1]	Schedule, subclause 3 (1), definition of associate, subparagraph (a) (ii)
omit
15 per cent
insert
15%
[2]	Schedule, subclause 3 (1), definition of associate, paragraph (b)
omit
relationship to
insert
relationship with
[3]	Schedule, subclause 3 (1), after definition of franchise
insert
franchise agreement has the meaning given by clause 4.
[4]	Schedule, subclause 3 (1), definition of franchisor, paragraph (c)
omit
subfranchisee.
insert
subfranchisee;
[5]	Schedule, subclause 3 (1), definition of franchisor, after paragraph (c)
insert
	(d)	a master franchisee in a master franchise system;
	(e)	a master franchisee in its relationship with a franchisee.
[6]	Schedule, subclause 3 (1), definition of master franchise
omit
the franchisor grants to a subfranchisor
insert
the franchisor grants to a subfranchisor or master franchisee
[7]	Schedule, subclause 3 (1), after definition of master franchise
insert
motor vehicle means a vehicle that uses, or is designed to use, volatile spirit, gas, oil, electricity or any other power (except human or animal power) as the principal means of propulsion, but does not include a vehicle used, or designed to be used, on a railway or tramway.
Examples of motor vehicles
1	motor car
2	motor cycle
3	motorcycle
4	tractor
5	motorised farm machinery
6	motorised construction machinery
7	aircraft
8	motor boat
motor vehicle dealership means a business of buying, selling, exchanging or leasing motor vehicles that is conducted by a person other than a person who is only involved as a credit provider, or provider of other financial services, in the purchase, sale, exchange or lease.
[8]	Schedule, subclause 3 (2)
omit
Corporations Law
insert
Corporations Law
[9]	Schedule, clause 4, heading
substitute
4	Meaning of franchise agreement
[10]	Schedule, subclause 4 (3)
omit
do not in themselves
insert
does not in itself
[11]	Schedule, subparagraph 4 (3) (f) (ii)
omit
Co-operatives Act 1996
insert
Co-operatives Act 1996
[12]	Schedule, subparagraph 4 (3) (f) (viii)
omit
Northern Territory.
insert
Northern Territory;
[13]	Schedule, after subparagraph 4 (3) (f) (viii)
insert
	(ix)	the Corporations Law.
[14]	Schedule, paragraph 5 (2) (a)
omit
applies
insert
apply
[15]	Schedule, subclause 6 (1)
omit
under
insert
in accordance with
[16]	Schedule, subclause 6 (1), at the foot
insert
Note   Under the definition of franchisor, a franchisor includes a master franchisee, or a subfranchisor, in its relationship with a subfranchisee:  see subcl 3 (1).
[17]	Schedule, subclause 6 (2)
omit
under
insert
in accordance with
[18]	Schedule, subclauses 6 (4) and (5)
substitute
	(4)	If a franchisor proposes to grant a master franchise, the franchisor must give a disclosure document in accordance with Annexure 1 to the prospective subfranchisor or master franchisee.
Note   Subclause (4) does not apply to a franchise agreement to which para 5 (3) (a) applies.
	(5)	If a subfranchisor or master franchisee proposes to grant a subfranchise to a franchisee:
	(a)	the franchisor and subfranchisor, or the master franchisee:
	(i)	must individually give a disclosure document to the franchisee or prospective franchisee; or
	(ii)	must give to the franchisee or prospective franchisee a joint disclosure document that addresses the respective obligations of the franchisor and the subfranchisor; and 
	(b)	the subfranchisor, or the master franchisee, must comply with the requirements imposed on a franchisor by this Part.
[19]	Schedule, clause 8
omit
under
insert
in accordance with
[20]	Schedule, subclause 9 (1)
omit
under Annexure 1
[21]	Schedule, paragraph 11 (3) (a)
after
agreement
insert
with a franchisor
[22]	Schedule, paragraph 11 (3) (b)
omit
a franchisor
insert
the franchisor
[23]	Schedule, subclause 12 (1)
omit
under
insert
in accordance with
[24]	Schedule, after subclause 17 (2)
insert
	(3)	A franchisor is taken to have complied with paragraph 12.1 (h) of Annexure 1 if, to the extent to which the franchisor is aware of the details, the franchisor supplies the following information for the period before 1 July 1998 to the franchisee:
	(a)	the amounts of expenditure on production, advertising, administration and any other category of expenditure stated in the disclosure document for each marketing or other cooperative fund controlled or administered by or for the franchisor to which the franchisee may be required to contribute;
	(b)	the percentage that each amount disclosed in accordance with paragraph (a) constitutes of the total expenditure disclosed in accordance with that paragraph.
[25]	Schedule, paragraph 18 (2) (e)
after
franchisor
insert
in Australia
[26]	Schedule, Annexure 1, paragraph 1.1 (d)
omit the first mention of
and
[27]	Schedule, Annexure 1, item 3.1
after
a summary of the
insert
relevant
[28]	Schedule, Annexure 1, item 6.1
omit
State or Territory
insert
State, Territory or region
[29]	Schedule, Annexure 1, paragraph 9.1 (i)
omit
to what extent.
insert
to what extent; and
[30]	Schedule, Annexure 1, after paragraph 9.1 (i)
insert
	(j)	whether the franchisor, or an associate of the franchisor, will receive a rebate or other financial benefit from the supply of goods or services to franchisees, and whether any rebate or financial benefit is shared, directly or indirectly, with franchisees.
[31]	Schedule, Annexure 1, item 10.2
omit
[32]	Schedule, Annexure 1, item 11, heading
substitute
11.	Sites or Territories
[33]	Schedule, Annexure 1, item 11.1
substitute
	11.1	The policy of the franchisor, or an associate of the franchisor, for selection of as many of the following as are relevant:
	(a)	the site to be occupied by the franchised business;
	(b)	the territory in which the franchised business is to operate.
[34]	Schedule, Annexure 1, item 12.2
substitute
Note   Subclause 17 (3) of the Code deals with compliance by the franchisor with para 12.1 (h).
[35]	Schedule, Annexure 1, item 20.2
substitute
	20.2	Financial reports (including profit and loss statements and balance sheets) for the last 2 years that have been prepared by the franchisor in accordance with the relevant accounting standards under section 296 of the Corporations Law.
Notes
1.	These Regulations amend Statutory Rules 1998 No. 162.
2.	Made by the Governor-General on 25 August 1999, and notified in the Commonwealth of Australia Gazette on 1 September 1999.