Franchising Future Map: The Opportunity To Help Create
If you're a part of our vibrant $170 billion franchising sector, this information is for you. Minister for Small Business Julie Collins has now announced an independent review of the Franchising Code of Conduct, with an opportunity for those within the franchising sector to have their say to the state of play of franchising in Australia and its future directions.
Guiding this journey will be Dr. Michael Schaper, former deputy chair of the Australian Competition and Consumer Commission (ACCC).
Navigating the Focal Points of Review
For the specific terms or reference for the review see here.
Overall, this is where, if you get involved in the submissions, you may get to make a material impact on the future of Franchising within Australia, in respect to:
1. Revamping the Franchising Code's Purpose: With the Franchising Code set to sunset on April 1, 2025, they are seeking to fine-tune its relevance to steer the industry forward.
2. Strengthening Regulatory Advocates: The roles of the ACCC and the Australian Small Business and Family Enterprise Ombudsman come under the spotlight.
3. Fuelling the Automotive Sector: The review explores extending the Franchising Code's umbrella beyond new car dealerships, to arguably transform the automotive sector's landscape.
4. Evaluating Modern Reforms: Assessing the efficacy of 2020 and 2021 reforms, including elevated dispute resolution avenues and franchisees' ROI. This could become a game-changer.
5. Heightened Penalties for Accountability: Scrutinising the impact of 2022 reforms, including increased penalties for Franchising Code violations.
6. Franchise Disclosure Register Momentum: This came in last year with arguably some wide variations in how people considered and treated the required disclosures. As of November 15, 2023, provisions related to the Franchise Disclosure Register will gain momentum.
What's Next for Franchisors? (Existing & Future)
For franchisors, this is could be your podium. You have the opportunity to engage in the consultation process and share your experiences and insights on the above mentioned areas, including, dispute resolution, education, so as to help set the roadmap for a thriving industry.
What's Next for Franchisees?
For those on or considering a franchisee journey, stay informed about the evolving landscape and where relevant share your own insights.
Celebrating Progress: Recent Reforms and Industry Milestones
Pausing for a moment, it should be recognised that Australia arguably already has one of the most regulated franchising industries in the world. Good faith obligations and 2021 reforms fortified dispute resolution paths, creating transparency for franchisees. Heightened penalties underscored the sector's commitment to compliance.
Landmark cases such as Ultra Tune's dispute and the 7-Eleven underpayment saga underscored the pivotal role of ethical conduct and fair treatment within franchises.
Steering Ahead:
This could be your moment to help craft the future of franchising regulations.
Overall, regulation needs to be balanced and focused on achieving the agreed goal of having a positive and thriving franchising sector that is regulated for protection of those in less power and/or more vulnerable position, but not too regulated to hinder the growth and development of the industry.
Want more information, feel free to get in touch with us today.