Australian Government response to the Parliamentary Joint Committee on Corporations and Financial Services inquiry into the operation and effectiveness of the Franchising Code of Conduct report: Fairness in Franchising

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. The Government response is available on the Australian Parliament House website.

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.