Consumer Protection Act (CPA)

 

According to legal experts, the new Consumer Protection Act (CPA) will have a huge impact on virtually every business in South Africa, including the franchise sector.  Franchisors will have to revisit their franchise agreements and insure that they comply with the Act, while franchises will have more protection than ever before.  
  1. HOW WILL THE FRANCHISE INDUSTRY CHANGE DUE TO THE CPA?
  The CPA will profoundly affect the franchise sector in numerous ways.  It’s the first piece of legislation in South Africa that contains provisions specifically regulating the sector.  The Act and the regulations in terms of it, when they are finally promulgated, will specify certain terms and information that must be included in franchise agreements. Other provisions that will affect the ways in which many franchise systems have traditionally operated include:
  • A ‘cooling off’ period of ten working days after signing the agreement,...
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