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Supporting Australia’s franchising sector

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.
 

Our department is responsible for engaging and consulting with Australia’s franchising sector. We ensure franchising policy remains fit for purpose, and that the sector operates efficiently. 

The Minister for Employment, Skills, Small and Family Business has policy responsibility for the Franchising Code of Conduct under the Industry Codes Policy Framework.

The Franchising Code of Conduct is a mandatory industry code under the Competition and Consumer Act 2010. The Code regulates Australian franchisees and franchisors. Find out about Franchising Code business requirements on the Australian Competition and Consumer Commission website. 

Visit business.gov.au/franchising for more information.

Franchising disputes

We also help with Franchising Code of Conduct disputes. 

Our department’s Franchising Mediation Advisor is appointed under the Code, to assist disputing franchising parties find suitable resolutions. The Mediation Adviser is supported by the Australian Small Business and Family Enterprise Ombudsman’s Office which provides free support and access to mediation services. 

Franchising sector reforms

A 2018 Senate inquiry examined the Franchising Code of Conduct’s operations and effectiveness. Read the Joint Committee’s recommendations in their final Fairness in Franchising report on the Parliament of Australia website.

An inter-agency Franchising Taskforce consulted with the franchising sector and advised the Australian Government on the feasibility of implementing the Joint Committee’s recommendations. See the Taskforce’s Issues Paper, Regulation Impact Statement and submissions on our Consultation hub. 

Australian Government response

The Australian Government released its response to the Parliamentary Joint Committee on Corporations and Financial Services’ Fairness in Franchising report.

To put the government response into action we consulted on proposed changes to the Franchising Code of Conduct. 

You can visit our Consultation hub website to keep up to date on small business consultations. 

Automotive franchising 

The Australian Government is committed to supporting our automotive industry and particularly small and family dealerships.

Read the former Minister’s media release ‘Backing Australia’s family-owned automotive industry’.

Read the principles for new car dealership agreements. The guidance has been developed in consultation with industry to improve fairness and transparency in dealership arrangements.

Find out more about the legislated reforms in the Competition and Consumer (Industry Codes—Franchising) Amendment (New Vehicle Dealership Agreements) Regulations 2020. 

Read the former Minister’s media release ‘Supporting the new car retailing market’.  

We consulted with the automotive franchising sector to examine relationships between new car dealers and manufacturers. See our Regulation Impact Statement and Exposure Draft Regulation on our Consultation hub.

Read the Senate Inquiry into the regulation of the relationship between car manufacturers and car dealers in Australia (formerly General Motors Holden Operations in Australia) report. 

Read more 

Connect with us

Contact us

Email SmallBusinessFranchising@industry.gov.au

Last updated: 15 June 2021

Content ID: 67084