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International Franchise Law: Australian Courts Weigh-In On What Is A Franchise

MELBOURNE, Australia (Blue MauMau) - In today’s judgment in ACCC v Kyloe Pty Ltd [2007] FCA 1522, the Federal Court in Australia examined a drink machine distribution arrangement and concluded it did not fall within the definition of ‘franchise agreement’ in clause 4 of the Australian Franchising Code of Conduct (the Code). Clause 4 (below) provides a cumulative set of criteria that must be met before an agreement may be caught under the Code.

4 Meaning of franchise agreement
(1) A franchise agreement is an agreement:
(a) that takes the form, in whole or part, of any of the following:
(i) a written agreement;
(ii) an oral agreement;
(iii) an implied agreement; and

Franchise Regulation

Regulation History