A franchise agreement entered into in contravention of cl 11(1) of the Franchising Code of Conduct is unenforceable by the franchisor at common law by reason of statutory illegality. The remedial provisions in Part VI of the Trade Practices Act 1974 (Cth), including s 87(2)(a), do not impliedly negate the common law rule. Franchisors must strictly comply with cl 11 disclosure and acknowledgment requirements before entering into franchise agreements, as non-compliance renders the agreement unenforceable regardless of whether the breach is substantial or technical.
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