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Government Response to the Fairness in Franchising Report

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Publication Date: 
August 2020
Small business Machinery of Government (MoG) changes 2021
This content is under review. The small business function transferred to Treasury as a result of the Administrative Arrangements Order made on 15 April 2021 with effect from 15 April 2021.
 

The Parliamentary Joint Committee’s Fairness in Franchising report revealed a range of problems in the franchising sector. Franchising regulation needs reform to restore confidence in the sector.

In response to the Parliamentary Joint Committee’s report, the Australian Government will:

  • double the penalties that apply for breaches of the Franchising Code
  • strengthen dispute resolution options by introducing conciliation and voluntary binding arbitration
  • improve disclosure relating to supply arrangements, marketing funds, exit arrangements and significant capital expenditure
  • introduce a public register of franchisors to increase transparency in the sector
  • develop a franchising website to make it easier for both franchisors and franchisees to access information and support
  • prohibit franchisors unilaterally imposing significant capital expenditure on franchisees during the term of an agreement

An inter-agency Franchising Taskforce consulted with the franchising sector on the Parliamentary Joint Committee’s report. See the Taskforce’s Issues Paper, Consultation Paper and submissions on our Consultation hub.

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Email SmallBusinessFranchising@industry.gov.au