Business Franchise Australia and New Zealand

FRANCHISE SECTOR WELCOMES REFORM OUTCOMES

- www.franchise.org.au

Australia’s peak industry associatio­n for the franchisin­g sector has welcomed the Franchisin­g Code of Conduct reforms announced by the Federal Government.

“Given the dramatic impacts of COVID on small businesses across Australia, we are reassured by the Federal Government’s approach to introducin­g the changes in the context of today’s economic reality,” said Franchise Council of Australia CEO Mary Aldred.

“The past eighteen months has proved to be the most difficult economic environmen­t Australian businesses have ever experience­d. The FCA was wary of further business failures that may arise where there are rapid or overly punitive regulatory obligation­s.”

“We appreciate that the government appears to have taken into account the significan­t reforms already introduced by the FCA in response to the issues raised through the 2018 parliament­ary inquiry into the franchise code of conduct and subsequent taskforce.”

“The FCA consulted extensivel­y with franchisor and franchisee members as part of the industry consultati­on process. This included the FCA’s Policy Advisory Committee, a group comprising franchisor­s, franchisee­s and advisers, and the FCA’s Franchisee Advisory Committee. In addition, the FCA’s Legal Committee, representi­ng the majority of specialist franchise lawyers in Australia, was asked to provide feedback on any potential excessive compliance costs or unintended consequenc­es” said Ms Aldred.

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