Franchises Must be Prepared for Tough New Laws
Changes to the Fair Work Act will have a significant impact on the franchise business model in Australia if franchisors and franchisees are not prepared, MYOB CEO and newly appointed Business Council of Australia board member Tim Reed has cautioned.
The laws include penalties for incorrect reporting and record-keeping and more liability for franchisors for contraventions by franchisees, if reasonable steps were not in place to prevent breaches.
As Australia’s leading franchise accounting software provider, MYOB’s suite of online products minimise the risk to both franchisees and franchisors from falling foul of these legislative changes.
In accepting the rationale for the legislation, MYOB CEO Tim Reed reflected that it is a pity that the poor behaviour of a few is having such an impost on the entire franchising ecosystem. He cautioned Australian franchises these changes would require careful consideration, and that his company was available to assist and would continue its long-held support for franchises in Australia.
“The franchise model has enjoyed great success in this country and we understand the importance of the model. That’s why MYOB has been the official Small Business Solutions and Technology partner of the Franchise Council of Australia (FCA) for four years and is passionate about supporting these entrepreneurial Australians.
“MYOB has the tools, the smart technology and the eco-system of partners in place that supports this legislative change.
“Our solutions create unique integration opportunities helping to prevent compliance breaches which protects both franchisors and franchisees.
“MYOB is the ideal partner for franchises across Australia preparing for tough new Fair Work laws and penalties,” Mr Reed said.
MYOB solutions simplify business records and ensure franchise software is up-to-date for payroll purposes, an important consideration when there are changes in awards or penalty rates.
“MYOB products help improve the integrity of a franchise’s data, reducing the chances of incidental compliance breaches,” Mr Reed said
Bruce Billson from the FCA said it was important franchises familiarised themselves with these law changes and the FCA was actively promoting awareness and a ‘compliance culture’.
“It’s very important that FCA members and the broader franchising community get across these changes and we would encourage them to use ‘right sized’ systems and software which make compliance as easy as possible.
“We have been working with MYOB for more than four years and commend their proactive commitment to simplifying the way franchisors and franchisees operate.
“The FCA is now focused on engaging with the franchise community and the Fair Work Ombudsman to ensure this economically important and successful model of entrepreneurship continues to thrive alongside these changes,” Mr Billson said.
Tim Reed will deliver a key note speech at the FCA’s National Franchise Convention in October. MYOB will also be sponsoring a Tech Hub with key technology partners at the event.