Business Environment

Inquiry into Franchising in Australia

4 April, 2019, Posted By The Web

This information is an excerpt from the Parliamentary Joint Committee on Corporations and Financial Services media release and is available to read in full here.

The existing regulatory framework and Franchising Code of Conduct were developed on the assumption that adequate disclosure would be sufficient to allow franchisees to protect themselves from opportunistic behaviour and power imbalances.  Disclosure and transparency are still necessary, but are insufficient to protect franchisees operating small businesses against the abuse of contractual power by some franchisors.

The committee is proposing substantial changes to the Franchising Code of Conduct and to the responsibilities and powers of the ACCC.  Recommended regulatory changes address: disclosure, franchise registration, supplier rebates, whistleblower protections, unfair contract terms, cooling off periods, exit rights, collective action, dispute resolution, binding commercial arbitration, alignment of industry codes, churning, education, and leasing arrangements.

Read more here…

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