Document ID: chunk:federal_register_of_legislation:F2022C01111:clause:1_3
Version: federal_register_of_legislation:F2022C01111
Segment Type: clause
Provision Reference: sch 1 cl 3
Character Range: 12871–14698

3  Application
 (1) Subject to subclause (4), this code applies to conduct occurring on or after 1 January 2015 (other than to discharge an outstanding obligation that arose under the old code) in relation to a franchise agreement entered into on or after 1 October 1998.
 (2) However, this code does not apply to a franchise agreement:
 (a) to which another mandatory industry code, prescribed under section 51AE of the Competition and Consumer Act 2010, applies; or
 (b) if:
 (i) the franchise agreement is for goods or services that are substantially the same as those supplied by the franchisee before entering into the franchise agreement; and
 (ii) the franchisee has supplied those goods or services for at least 2 years immediately before entering into the franchise agreement; and
 (iii) sales under the franchise are likely to provide no more than 20% of the franchisee's gross turnover for goods or services of that kind for the first year of the franchise.
 (3) Paragraph (2)(b) ceases to apply to a franchise agreement if:
 (a) sales under the franchise provide more than 20% of the franchisee's gross turnover for the goods or services for 3 consecutive years; and
 (b) the franchisee tells the franchisor that paragraph (a) of this subclause applies.
 (4) The provisions of this code mentioned in column 2 of the following table in relation to an item do not apply to a franchise agreement mentioned in column 1 of the item:

Provisions of this code that do not apply to certain franchise agreements
                                                                           Column 1                                            Column 2
Item                                                                       If a franchise agreement is entered into …          these provisions do not apply to the agreement …