New Code will boost best practice in franchising

By Sarah Stowe | 29 Oct 2015 View comments

The new Franchising Code has drawn praise from industry groups; both the Franchise Council of Australia and the Australian National Retailers' Association have welcomed the release of the updated Franchising Code of Conduct by the Federal Government.

FCA general manager, Kym De Britt said “The Franchising Code of Conduct review and subsequent update has been a lengthy process. During that time, both Governments have sought input from across the sector. It is pleasing to see that much of the contribution made by our members has been taken into account and is reflected in the update.

“Our members work at the coalface of what is a major part of the Australian economy. Both franchisors and franchisees are best placed to provide input into regulation that will ensure the Australian franchise sector remains a healthy and ethical place to do business."

Australian National Retailers' Association CEO Anna McPhee said "The national Franchising Code of Conduct framework has been particularly useful for Australia-wide operators, including ANRA members who can operate their business across state-boundaries without additional red tape," said .

"The new Code will reduce business costs, improve confidence in the franchising system, and provide greater transparency and clarity around the roles and responsibilities of franchisors and franchisees.

"The inclusion of a ‘good faith’ obligation on both franchisees and franchisors and the streamlined disclosure process were recommendations put forward by ANRA in the consultation process in 2013 and are welcome improvements.

"We are pleased with the comments by the Labor Party that they will work constructively with the Government to ensure the franchise sector continues to grow and prosper," McPhee added.