PREFACE

The application of certain provisions of the Competition Act 89 of 1998, as amended, to franchise agreements

  1. This notice is prepared and issued by the Competition Commission (hereinafter “the Commission”) in order to inform franchisors and franchisees about the impact of the Competition Act 89 of 1998 (hereinafter “the Act”) on their activities and arrangements to enable them to comply with the Act.
  2. This notice is purely a guide aimed at clarifying the areas of the application of the Act to various aspects of franchising agreements and is not binding on the Commission, the Competition Tribunal (hereinafter “the Tribunal”) or the Competition Appeal Court (hereinafter “the Appeal Court”) in the exercise of their respective judgment (ruling on cases), or their interpretation of the Act.