Franchisees and franchisors must comply with the franchising code of conduct. The code limits what a franchisor can put in a Franchising Agreement and restricts franchisors from giving franchisees information that may be misleading or deceptive.
The code provides for penalties if there is noncompliance from either party, it allows a cost-effective dispute resolution scheme, and it sets out the meaning of conduct of all parties involved in the franchise.