eBay permits the sale of franchises, subject to the following requirements.
- Franchises must be listed in the ‘franchises’ category.
- Franchises may only be listed in a classified format.
- Franchise listings must include the following wording, in not less than a size 9 font:
"The Franchising Code of Conduct is administered by the ACCC and creates a number of rules that apply when selling or buying a franchise. The ACCC's Franchisee start-up checklist <http://www.accc.gov.au/content/item.phtml?itemId=750832&nodeId=7fbbb576
572578dc7a5d791fe815e72a&fn=Franchisee%20start-up%20checklist.pdf > can help you understand your entitlements."
We recommend copying and pasting this text directly into your listing.
Make sure your listing follows these guidelines. If it doesn't, it may be removed, and you may be subject to a range of other actions, including limits of your buying and selling privileges and suspension of your account.
Why does eBay have this policy?
This policy helps ensure that buyers and sellers of franchises comply with the Franchising Code of Conduct.
The Franchising Code of Conduct is administered by the ACCC and contains a number of rules that apply when selling or buying a franchise. The ACCC ensures compliance with the Code by informing franchisors and franchisees of their rights and obligations under the Code and enforcing it where necessary.
It's important for sellers and potential buyers to understand their rights and obligations under the Code. Sellers can find out more in the ACCC's Franchising Code of Conduct compliance manual for franchisors and master franchisees.
Importantly, sellers should be aware of a franchisor's disclosure obligations before entering an agreement and a franchisee's right to a 7 day cooling-off period after signing an agreement or making any payment under the agreement (whichever is earlier).
Further information on the Franchising Code is available on the ACCC website. You can also contact the ACCC Small Business Helpline on 1300 302 021.