The Australian Government today announced it is commencing consultation on the recommendations made by the independent Review of the Franchising Code of Conduct.
The government released a consultation paper which presents questions and options to help clarify issues, business compliance activities and the implementation costs of the review recommendations.
Small Business Minister Gary Gray and Parliamentary Secretary for Small Business Bernie Ripoll released the consultation paper on the options to address the review's 18 recommendations.
"This consultation reflects the Government's commitment to providing certainty and confidence in the franchising sector," Mr Gray said.
"The consultation paper seeks to identify the regulatory impact to the franchise sector of implementing the review recommendations but does not reflect a settled government position.
"The Government wants the sector to grow and develop as an essential part of our economy."
The Review of the Franchising Code of Conduct was released on May 17. It was conducted by Mr Alan Wein, who made recommendations aimed at improving Australia's franchise model.
The review recommendations included:
- strengthening the obligations of parties to act in good faith in a franchise;
- a stronger enforcement regime including financial penalties for code breaches;
- improving disclosure on issues such as online trading; and
- better dispute resolution mechanisms including regulating attribution of costs to franchisees.
"The franchising sector contributes over $130 billion to the Australian economy and employs more than 400,000 people," Mr Ripoll said.
"While stakeholders have had the opportunity to make submissions to the review, this second consultation will directly inform a detailed Government response."
The three-week consultation period closes on July 9, 2013.
The consultation paper is available at www.innovation.gov.au/FranchisingCodeOfConduct.
17 June 2013