The Albanese Labor Government has delivered on its commitment to ensure a fairer and stronger franchising sector by remaking and improving the Franchising Code of Conduct.
The Code is due to sunset on 1 April 2025 and following consultation it has been remade with important changes to keep it effective and fit for purpose.
The new Code implements the legislative changes from the Government response to the Independent Review of the Franchising Code by Dr Michael Schaper.
Some of the key changes include:
- Improving protections for franchisees in relation to early termination and requirements that franchise agreements provide an opportunity to make a return on investment
- Reducing regulatory burden for franchisors by simplifying pre‑entry information requirements and streamlining processes for renewing or extending agreements, and
- Clarifying the purpose of the Code to better support future reviews of its operation.
The remade Code will come into effect on 1 April 2025 and provides certainty and confidence in the franchising sector.
Franchisors will have a grace period, until 1 November 2025, to comply with new requirements for franchise agreements and disclosure documents.
The Albanese Labor Government is committed to supporting Australia’s franchisors and franchisees to grow and strengthen their business.
Quotes attributable to Minister for Small Business, Julie Collins MP:
“This is about creating a level playing field in franchising. These changes reflect our Government’s commitment to supporting small businesses.
“The improvements in the Code strike the right balance between providing protections for franchisees and reducing red tape for franchisors who are doing the right thing.
“The remade Code will give franchisors and franchisees the confidence they need to grow their businesses, create jobs, and strengthen the Australian economy.
“Our Government continues to deliver for Australia’s 2.6 million small businesses, with our Small Business Statement outlining more than $640 million in targeted supports to ease pressure, support growth and level the playing field.”