In addition, in different circumstances, franchisors are jointly and severally liable with franchisees; For example, if the real estate agent commits theft, embezzlement or fraudulent embezzlement of money or debts resulting from the negligence of a franchisee. Many businessmen focus on managing and owning a franchise instead of starting their own business. They hope that there will be higher returns with a lower risk factor. Apart from the great road to success, it also has a number of complexities. It is very important for investors to review the franchise agreement before the commitment, in order to avoid disputes with stakeholders and financial losses. Under the Estate Agents Act 2008 (Vic), estate agents must be licensed. A registrar keeps a register of all real estate agents that contains details of all franchise agreements under which a real estate agent manages his business. Estate agents must inform the Business Licensing Authority of these franchise agreements. Franchisors are also subject to other provisions of the Competition and Consumer Act 2010 (Cth), including Australia`s consumer protection rules. For example, when negotiating a franchise agreement, a franchisee cannot behave in a deceptive or deceptive behavior or unscrupulous behavior on animals.
The Franchising Code of Conduct introduced a number of important changes to the regulation of franchise agreements in Australia, which were not included in the old franchising code: documents that do not need to be registered, but franchisors must pay stamp duty are also required to inform the Department of Fair Trading if a franchisee does not infuse money under the agreement. Otherwise, a maximum sentence of 100 criminal units (i.e. 11,000 $US) will also be imposed. In Western Australia, the Real Estate and BusinessAgent Act 1978 (WA) prohibits real estate and commercial agents from operating under a franchise agreement without government permission. If they do, all parties commit an infringement under the franchise agreement with a fine of up to $US 10,000. When authorization is granted, both the franchisee and the franchisee are held liable for penalties if the franchisee fails to comply with certain fiduciary account obligations and any criminal or fraudulent conduct of the franchisee that results in the loss of ownership of another person. . . .