Business Franchise Australia

Franchising regulatory framework review in 2023-24

The Federal Small Business Minister, Julie Collins MP, has reaffirmed the Government’s commitment to franchising and the small business sector, while giving a keynote speech at the 2023 National Franchising Convention.

Minister Collins said the theme of NFC23 ‘A world of opportunity’ aligned with the Federal Budget which was “about responding to the pressures that small businesses are facing and building for the opportunities for the future”.

Minister Collins also confirmed that the Franchising Code of Conduct, which has seen several amendments since its introduction in 1998, will be part of a broader review of the franchising regulatory framework later in the year.

She said the process would include required statutory reviews of the Franchise Disclosure Register and New Car Dealership protections in the Code.

Minister Collins commended franchise systems for the way they had engaged with new requirements including the Franchise Disclosure Register which went live in November last year.

“The information on the register makes it easier for newcomers to do their homework before signing up. They can search the register and compare different franchises. They can see when a franchise system started operating in Australia. They can see the states and territories where it operates. And they can see where it intends to expand. Importantly, they can compare set-up costs and get an idea about other payments.”

The FCA recently met with Treasury officials to discuss the review approach and the Minister told NFC23: “Broader consultation is likely to start in the second half of the year and I look forward to providing you with more details. We want to make sure we’ve heard directly from you about what you want to see out of this review process.”

In closing, Minister Collins said “The Albanese Government is committed to supporting franchising and the small business community. I’m also pleased to be engaging with the sector in preparation for reviewing the franchising regulatory framework – it will be a priority for us.”

The Small Business Minister said the extent of franchising across Australia’s small business sector was “great for the national economy and even better for our local communities”.

The National Franchise Convention is the largest and most comprehensive professional development event on the FCA’s annual calendar and approximately 500 decision makers from major franchise brands across sectors attended NFC23 on 15-16 May at the Star Gold Coast.