March 12, 2013

Franchising Code of Conduct 2013 Review

There are approximately 73,000 franchise units in Australia, which contribute $131 billion to Australia’s economy, and directly employ more than 400,000 people.  The legislation and codes that regulate the industry are regularly reviewed.

THE REVIEW

A review of the Franchising Code of Conduct (Code) is underway to analyse the effectiveness of amendments made to the Code in 2008 and 2010 (Review). The Review was announced by the Minister for Small Business, Brendan O’Connor, and will be conducted by Mr Alan Wein.  Mr Wein has strong connections with franchising as a legal professional and as co-founder of the House franchise group of homeware stores.

THE TERMS OF REFERENCE

The Government has directed Mr Wein to inquire into the efficiency of the amendments made to the Code in 2008 and 2010. In addition to this inquiry, the Government has further requested that Mr Wein specifically inquire into:

  • good faith in franchising;
  • the rights of franchisees at the end of the term of their franchise agreements, including recognition for any contribution they have made to the building of the franchise; and
  • the operation of the provisions of the Competition and Consumer Act 2010 as they relate to enforcement of the Code.

Mr Wein is required to prepare a report for public release on or before 3 April 2013.