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Consumer Protection – Franchising

The Consumer Protection Act 68 of 2008 (hereafter referred to as the “CPA”) came into force on 1 April 2011.

The CPA applies to every transaction in South Africa concerning the supply of goods or services where the consumer is a natural person or a juristic person with an annual turnover or asset value under the threshold of R3 million.

The CPA also applies to franchises and includes specific references to franchises and franchise agreements.

On 1 April 2011, new Regulations were published in the Government Gazette in terms of the CPA which relate to franchises.  The Regulations include prescriptions on the contents of Franchise Agreements, Disclosure Documents and Operational Manuals.  The deadline in which to comply with these Franchise Regulations is 30 September 2011.

You are welcome to consider instructing our firm to assist with any matters relating to the following aspects relevant to franchising:

  • Drafting of new Franchise Agreements to comply with CPA Regulations
  • Update of existing Franchise Agreements to comply with CPA Regulations
  • Review of Franchise Agreements on behalf of Franchisees
  • Conducting IP due diligences
  • Conducting trade mark audits
  • Registration of trade marks, patents and designs
  • Registration of Companies

You are welcome to contact us for more information and free quotations. We look forward to hearing from you.

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