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Federal government seeking comment on review of Franchising Code of Conduct

Tuesday, 18 June 2013 | By Rose Powell

The federal government is seeking comments from the franchising industry on recommendations contained in a review of the Franchising Code of Conduct.


The review by Alan Wein produced 18 recommendations that included measures designed to simplify compliance and increase regulatory certainty.


The Wein Report, which explored adding a duty of good faith in the code, also found Australia’s franchising industry worked fairly well and had relatively low rates of disputes and complaints.


The Department of Innovation is now seeking comment on the report’s recommendations until July 9.


Small Business Minister Gary Gray says in a statement the consultation would strengthen and increase franchising in Australia.


"The government wants the sector to grow and develop as an essential part of our economy,” he says.


“The consultation paper seeks to identify the regulatory impact to the franchise sector of implementing the review recommendations but does not reflect a settled government position.”


Franchising plays a significant role in Australia’s small business sector, with about 73,000 franchises contributing annual turnover of about $131 billion.