Underneath the Golden Boy - Robson Hall Faculty of Law

380 Underneath the Golden Boy
granted to the franchisee, information on the goods or services that the
franchisee is obliged to buy or rent; information on the prohibition to compete
that will apply during or after the time for which the franchise agreement will
last; information about the term of the agreement, conditions for modification,
prolongation and termination of the franchise agreement, as well as the
economic consequences of termination; and, finally, information on how a
dispute as to the agreement shall be tried and what shall apply as to liability for
the cost of such trial. 125 The Law does not regulate franchise relationship, by
omitting to establish duties, other than disclosure related, upon franchisors and
franchisees.
The franchise industry in Sweden counts with the support of the Swedish
Franchise Association (“SFF”). Founded in 1972, the association provides
support to its members and conducts research on this area of business. Moreover,
the SFF adheres to the European Franchise Federation’s Code of Ethics. 126
C. Pan-Asia
1. Australia
Australia’s franchising sector has experienced tremendous growth and
popularity, so much so that many often argue the number of franchise systems
per capita in Australia is too high. 127 The total number of franchisors in Australia
has increased from 693 in 1998 to 960 in 2006, out of which 93 percent are
Australian-based franchise systems. Furthermore, it is estimated that there are
56,200 business format franchised business units operating together with some
5,660 company-owned units, producing a total of 61,860 units in business format
franchise systems. 128
The Franchising Code of Conduct (“The Code”) became law on 1 July 1998
and was fully operational on 1 October 1998. The Code is promulgated as the
Trade Practices (Industry Codes – Franchising) Regulations 1998, made under
125
Swedish Franchise Association, Law on the Duty of a Franchisor to Provide Information (24
May 2006, Law No. 2006:484), online: New Franchise Law in Sweden
at §3.
126
Swedish Franchise Association, “Franchising in Sweden,” online: English
.
127
Lorelle Frazer, Scott Weaven & Owen Wright (Service Industry Research Centre, Griffith
University), “Franchising Australia 2006 Survey,” online: FCA Franchise Survey 2006
at 9.
128
Ibid. at 8-9.