Franchise Council of Australia
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Franchise review to introduce "good faith" provision into code
5:44PM | Monday, 20 MayThe long awaited publication on Friday of the government’s review of the Franchising Code of Conduct has been welcomed by the franchising sector. The Franchise Council of Australia and the Franchise Advisory Centre have both backed the 18 recommendations in the review conducted by franchising expert Alan Wein. The major change pushed by the review is its recommendation to incorporate the common law duty of good faith into the code, rather than devising some new and different definition of good faith. The report also rejected calls for mandatory extension of franchise agreements, and compensation at the end of the franchise term. The review found the Australian franchise sector operates well. Wein wrote that the Franchising Code of Conduct is “a robust model” and “generally operates effectively within a very dynamic and difficult economic environment.” Wein also noted the relatively low levels of complaint and disputation in the sector. Stephen Giles, partner at law firm Norton Rose and deputy chairman of the Franchise Council of Australia, told SmartCompany the Wein Report affirms the health of the franchise sector. “There are good recommendations to improve disclosure and address perceptions about good faith, and also try to reduce potential red tape,” he says. “One of the key things for us is that the Franchising Code of Conduct is a single national framework, not state-based.” Jason Gehrke, director of the Franchise Advisory Centre, is also backing the recommendations. “I think there is something in the recommendations for everyone,” he says. “There are suggested improvements on technical aspects to the code which have been of concern for a while and there are things there which will contribute towards a greater level of best practice of franchising in Australia, which already is world’s best practice anyway.” Gehrke praised the review’s introduction of a good faith provision. “I think a definition of good faith is always problematic, so the solution that good faith is not to be defined in the code but it is to be acknowledged, is the best possible outcome,” he says. The FCA and FAC both believe the changes advocated in the review will not increase red tape in the franchising sector. “As a small business sector we are always conscious that there is a lot of regulation of franchising relative to other areas of business but I think that is just a function of franchising being more identifiable,” Giles says. “The key will be to make sure the actual amendments implement the intent of the review.” Gehrke also says whether or not red tape increases depends on the translation of the recommendations, as “the devil will be in the detail”. “Conceptually the recommendations are understandable. How they translate into the practical day-to-day conduct of a commercial entity might require a lot more detailed thought,” he says. The changes recommended in the review have bipartisan support, so the FCA and FAC both hope they are quickly legislated. “Both the small business minister and shadow small business minister have no great desire to have this as a battle ground for the election,” Giles says. The full report is available here. This story first appeared on SmartCompany
Sherpa Kids flags global expansion following UK launch
3:34AM | Friday, 15 MarchAfterhours childcare franchise Sherpa Kids plans to recruit 100 Australian franchisees in five years and expand into as many as eight countries, after launching in the United Kingdom.
An industry wishlist for Small Business Commissioner Mark Brennan – and his take on things
3:13AM | Thursday, 14 MarchIt’s only been a few weeks since Mark Brennan stepped into his role as the inaugural Australian small business commissioner, following the announcement of his appointment in October.
Franchisee coalition outlines wish list for franchise code review
3:54AM | Friday, 15 MarchThe National Franchisee Coalition has outlined its wish list for the federal government’s review of the Franchising Code of Conduct, including a specific definition of good faith and measures to combat the issue of “churning”.
The break-up: What happens when franchises go wrong
2:17AM | Monday, 4 FebruaryA franchise has often been compared to a marriage. Franchisor and franchisee have a close working relationship built on trust and mutual respect.
Retail Food Group sees 120% post-Christmas spike in franchise enquiries
1:22AM | Thursday, 31 JanuaryRetail Food Group says it received more than double the number of enquiries this January compared to January 2012, as enquiries throughout franchising experience an upward trend.
Franchise association to shift focus as executive director departs
3:11AM | Friday, 15 MarchThe Franchise Council of Australia has flagged a shift in focus following the resignation of executive director Steve Wright, who has been commended for his “tremendous” contribution.
Start-ups urged to speak out over franchise code review
3:12AM | Monday, 11 MarchThe head of the federal government’s review of the franchising code of conduct says while he comes to the job with no pre-conceived ideas for what should change, topics such as bargaining in good faith, disclosure rules and mediation are all priorities for review.
Two-thirds of would-be franchisees rely on external finance: Report
3:23AM | Tuesday, 12 MarchAlmost 70% of prospective franchisees rely on external finance, according to a new report, which shows franchisees continue to gravitate towards stable sectors such as food and beverage.
Brumby’s carbon tax controversy prompts franchisee legal warning
7:36AM | Monday, 9 JulyFranchisees have been warned that they are personally liable for their actions, in the wake of the Brumby’s carbon tax pricing furore.
Web portal Oswill.com.au aims to develop 1,000 franchises across Australia
4:53AM | Friday, 27 AprilA newly-launched online portal is offering businesses the opportunity to offer products, trades and services as franchisees, with the aim of developing more than 1,000 franchises nationally.
Retail tenancy code struggles to win support of big landlords
2:33AM | Tuesday, 28 FebruaryThe Franchise Council of Australia will tomorrow discuss a voluntary code of conduct for retail landlords and tenants, but the Shopping Centre Council is strongly opposed to the idea. The FCA will host a forum in Sydney tomorrow, which will centre around discussions on a range of issues including a proposed retail tenancy code of conduct. Other proposals include a payroll tax freeze, and government assistance for small business and occupation health and safety. “[The event] is not intended to be a wailing wall. Those attending... are looking at ways for small business to be more successful,” FCA executive director Steve Wright says. Retail tenancy code of conduct Last year, the FCA put the focus on retail tenancy. It began working on a draft document and has called for industry support for the concept. Wright says the code is designed to stem conflict between landlords and tenants about rental increases, end-of-term arrangements, fit-out requirements and abuse of market power. But the Shopping Centre Council, which represents big retail landlords, opposes the code. It wants existing state and territory regulations to be aligned under a single set of national laws. While the SCC has stated its opposition to the code, the FCA remains hopeful an agreement can be reached, particularly if it leads to harmonisation of retail tenancy laws across the country. The guidelines are designed to give retailers confidence about security of tenure, and are particularly relevant given poor occupancy rates in North American shopping malls, Wright says. The SCC has been invited to participate in the forum, but has labelled the proposed code as a “media stunt” and has told the FCA it will not discuss the matter. Other issues to be discussed at the forum include: Government assistance The discussion about government assistance will centre on the model adopted by the United States Small Business Administration. Since its founding in 1953, the SBA has delivered about 20 million loans and loan guarantees to small businesses. “The FCA is not intending to ask government to be a lender,” Wright says. “It is asking it to make use of an unused bank wholesale funding guarantee to provide a guarantee to business start-ups which lack a guarantor and who would otherwise get a bank loan if they had a guarantor.” Payroll tax freeze The concept of a payroll tax freeze will also be discussed at the forum. “The FCA is not asking for a reduction of payroll tax. It is asking only for a freeze so that payroll tax bills paid by employers do not get any bigger,” Wright says. “A freeze would remove any ‘threshold creeps’, which can be a disincentive to employ new workers as the new employment may take a business above the threshold.” “[The business would] therefore incur the tax or even be dragged into paying payroll tax simply by granting a pay rise to employees, in order to keep them.”
Shell invites franchise council to jobs expo for retrenched workers
2:13AM | Thursday, 23 FebruaryShell Australia invited the Franchise Council of Australia to attend a jobs expo for its retrenched workers last week, highlighting the shift to franchising amid mounting job losses.
The great franchise giveaway
5:09AM | Wednesday, 2 MayThe problem franchisors face in recruiting quality franchisees isn’t a new one, but only recently have industry players begun to offer bold incentives, such as the reduction or elimination of fees.
Fair Work Ombudsman launches National Franchise Program
3:17AM | Friday, 15 MarchThe Fair Work Ombudsman has launched a franchise program in a bid to strengthen the sector, teaching franchisors how to best promote compliance with workplace laws.
Service franchises trump food retail in popularity stakes
11:06AM | Wednesday, 16 NovemberService-based businesses have trumped food retail as the most popular type of franchise for new franchisees, new research reveals, due to smaller start-up costs and stronger trading conditions.
WA Franchising Bill falls over but Liberal MP Peter Abetz still confident
11:30AM | Friday, 4 NovemberAdvocates of state-based franchising laws have suffered a setback after a private member’s bill in WA failed to pass through Parliament earlier this week, falling short of just one vote.
SA gives green light to SME commissioner and franchising code
10:25AM | Monday, 24 OctoberSouth Australia will receive its own Small Business Commissioner and a new code to protect franchisees, after a hotly contested bill passed through state Parliament.
Coffee Club franchisee scoops FCA award
10:43AM | Friday, 14 OctoberThe Coffee Club franchisee Carolyn McManus has revealed her secrets to success for multi-unit franchising, after being named Multi-unit Franchisee of the Year by the peak industry body.
ACCC to crackdown on franchise compliance
10:31AM | Monday, 10 OctoberCompetition watchdog ACCC says it will focus on compliance in the franchising sector in order to “improve its standing”, while industry experts say the sector is performing well financially.
