There aren’t many limits on what can be in a franchise agreement and whoever signs the agreement agrees to be bound by what it says.

There are laws that put some limits on what can be put in franchise agreements including:

• Laws about contracts
• Competition laws such as laws about resale price maintenance and exclusive dealing
• Consumer laws such as laws about unfair contract terms which apply to small business standard form contracts.

The Franchising Code of Conduct is going to regulate the franchising sector and set out certain requirements and standards that enhance to limits what franchisors can put into a franchise agreement, in areas including:

• Terms that prevent a franchisee from working elsewhere once the agreement ends (‘restraint of trade’ clauses), if the franchise agreement is not extended
• Terms about who pays for legal costs and settling disputes
• The ability of franchisors to make changes to franchise agreements that apply retrospectively
• General releases of liability that favour the franchisor
• Waivers of any statements the franchisor makes to franchisees, either verbally or in writing.

VF Franchise has long-term cooperation with Tilleke & Gibbins law brand, which was established in 1890 with more than 160 lawyers and consultants across Southeast Asia, with offices in Bangkok, Hanoi, Ho Chi Minh City and Ho Chi Minh City. Ho Chi Minh, Jakarta, Phnom Penh, Vientiane and Yangon

Source: The ACCC