Those with an interest in the franchise sector are reminded submissions on proposed changes to improve the Franchising Code of Conduct will close this week.
Earlier this month the Federal Government released its 'Future of Franchising' statement along with an exposure draft bill and regulations which outlined changes to the Code designed to save the sector $8.6 million in red-tape.
There has been wide support for the proposed changes which build on a review of the Code carried out by Alan Wein last year.
The proposed changes include the introduction of penalties for breaches of the code to protect small business owners.
The draft changes released by the Government balance the needs of franchisors and franchisees and the unique nature of the relationship between the two.
The Government is committed to:
- ensuring franchisees and franchisors act in good faith in their dealings with each other;
- introducing penalties for a breach of certain provisions of the Franchising Code along with enhanced audit powers for the Australian Competition and Consumer Commission;
- improving the transparency of marketing funds; and
- improving disclosure including short form, easy to understand information for prospective franchisees.
Submissions can be made via the Treasury website at www.treasury.gov.au.