(a) expenses that are disclosed to the franchisee in the publication document made available to the franchisor prior to the conclusion or renewal of the contract, or that extend the duration or scope of the contract; The proposed changes in this IFS will be subject to a future revision of the franchising code. Future franchising code verification processes will be defined as part of the more comprehensive changes to the franchising code implemented by the franchising task force. o producers who plan, in advance, a tailored communication of capital expenditures likely to be significant during the duration of the agreement. Some existing bargaining contracts require producers to repurchase shares when a contract expires or expires, but not all agreements contain these provisions. According to AADA, the producer generally has room for appreciation in the exercise of these repurchase provisions.  As discussed above with respect to the closing of negotiations on the deadline and notice periods, both parties, while the industry`s practices are different, can cooperate to reduce inventories when an agreement is reached, so the impact of the repurchase provisions will also vary accordingly.  Australian Competition and Consumer Commission, New car retailing industry market study – Final report, 2017, ACCC. Under the franchising code, a franchisor must allow a period of at least six months in advance if it intends not to renew the contract. Given the magnitude of the investments associated with the creation of a dealership, the 12-month period is proposed by dealer representatives (and recommended in the PJC report) as more appropriate notice for a car dealership to manage the non-extension of its agreement. For example, a longer notice period can help merchants transform establishments, find an alternative franchise, or manage their inventory.
Statistics on the number of unre renewed agreements have not been provided to DISER, but media reports on Holden`s decision not to renew up to 30 dealer contracts in 2018 indicate that the non-renewal of 30 contracts is not regular and tends to be accelerated by automakers` strategic audits. In addition, during the consultations, we heard anecdotally that the number of dealer contracts that are not renewed each year is low (with knowledge of the overrun of more than 1500 dealers in Australia).  DISER`s consultation confirms this. Buy-Sells, in which the distributor sells the business to another entity subject to manufacturer approval, are generally more frequent and vary by brand, with major brands contributing less than 10 buy-sells per year. While the number of unre renewed agreements may be small, the impact on dealers whose contracts are not renewed can be significant.