The Legal Implications of E-commerce for the Australian Franchise Sector

Business-to-consumer electronic commerce plays a vital role in modern business practices throughout the world. Many traditional retailers ventured into the online transactional space decades ago, while franchise chains have taken a more conservative approach in e-commerce adoption due to potential encroachment and the history of franchisor-franchisee litigation, among other reasons. This study analysed Franchising Code of Conduct, the Australian Consumer Law, relevant case law, in addition to the data from the interviews with franchise experts, adding a rich practitioner insight to this article. It found that the revised Franchising Code may have wide implications for how Australian franchisors conduct e-commerce resulting in greater e-commerce adoption. In addition, due to the change in the legislation, franchisors are being forced to review their e-commerce strategy as well as their legal documents, which may give rise to further development of e-commerce in the Australian franchising sector.