Supporting Australia’s franchising sector

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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

The Australian Small Business and Family Enterprise Ombudsman provides free support and access to mediation services.

Franchising sector reforms

A 2019 Parliamentary Joint Committee (PJC)  inquiry examined the Franchising Code of Conduct’s operations and effectiveness. Read the PJC’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.

Automotive franchising

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

In 2020, the Australian Government introduced a new automotive schedule to the Franchising Code - see Competition and Consumer (Industry Codes—Franchising) Amendment (New Vehicle Dealership Agreements) Regulations 2020.

Read the former Minister for Employment, Skills, Small and Family Business’ media release ‘Supporting the new car retailing market’.

Consultation with the automotive franchising sector informed the development of these reforms. The consultation examined relationships between new car dealers and manufacturers. See the Regulation Impact Statement and Exposure Draft Regulation consultations.

In 2021, the former Minister for Employment, Skills, Small and Family Business’ issued a joint media release with the Prime Minister ‘Backing Australia’s family-owned automotive industry’.

Further automotive franchising reforms were consulted on with the automotive franchising sector.

In March 2021, 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 was released. Read the Government response to the inquiry.

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