Business Franchise Australia

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Franchising Code of Conduct Deemed Generally Fit for Purpose

 

The Franchise Council of Australia (FCA) welcomes the acknowledgment from the Federal Government that the Franchising Code of Conduct is generally fit for purpose.
 
The FCA is currently reviewing the details of the independent review by Dr Michael Schaper which was tabled in Parliament.
 
The Franchise Council of Australia (FCA) lodged a comprehensive submission to the Review, supported by extensive feedback from members collated during the recent National Roadshow and Online Forum. It called for urgent action on the three key areas of removing duplication including by embracing technology; reducing red tape and compliance costs; and ensuring consistency with other existing regulatory and legal requirements. It also highlighted the urgent need for action on Retail Tenancies.
 
The FCA has a delegation to Canberra on March 26 and will be meeting with the Minister for Small Business the Hon Julie Collins as well as other decision makers.


 
Quote from Brendan Green, Chair of the FCA:
“As the Federal Government acknowledges, the Franchising Code of Conduct predominantly works well for both franchisees and franchisors, both of whom the FCA represents. We made clear in our consultation and submission that there are areas where the Code does need to be updated to embrace technology and the reality of doing business in 2024. There is also significant and costly duplication which needs to be addressed – a move that would deliver an immediate $10 million in savings.”
 
“We are currently reviewing the Independent Review in depth and will continue to consult with our Members on the practical, commonsense measures that should be taken to support one of Australia’s most important economic drivers and one which is at the heart of Australia’s small and medium businesses.”
 
“Franchising is a sector worth $174 billion to the Australian economy, with a workforce of almost 600,000 across more than 94,000 franchise outlets.”
 
Our objective as the peak body for this important sector is to drive excellence while also continuing to build connectivity, community and support across all members, whether franchisors or franchisees. This includes an important focus on promoting and supporting our members in regional and rural Australia who are even more relied on at a community level to provide key services.”
 
We will continue to consult widely with our members and contribute constructively to the Government’s considerations of the Independent Report. We thank Dr Shaper for his proactive engagement during the review process and we look forward to continuing to work closely with Government to drive the optimum outcome for Australia’s franchisees, franchisors, the people we employ and the communities we support.”

 

 

 

 

About the Franchise Council of Australia (FCA)The Franchise Council of Australia (FCA) is the peak industry body for franchising in Australia, representing both franchisors and franchisees.

 
With a rich history spanning four decades, the FCA is committed to promoting excellence, best practices, and innovation in the franchising sector. As a national voice on franchising, the FCA advocates for the interests of its members and works collaboratively to ensure the growth and success of franchising in Australia.