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Government to consult on franchising recommendations

06 Jun 2013

Joint media release with the Parliamentary Secretary for Small Business, the Hon Bernie Ripoll

The Australian Government is calling for input and comments from stakeholders, franchisees and franchisors on recommendations made by the review of the franchising code of conduct.

The Minister for Small Business, Gary Gray, and the Parliamentary Secretary for Small Business, Bernie Ripoll, said the government was committed to fully engaging with stakeholders on matters affecting them.

The Review of the Franchising Code of Conduct, prepared by Mr Alan Wein, was released on May 17, 2013.

"The Government is working on a Consultation Paper to be released on June 17 in response to the Wein Report," Mr Gray said.

Mr Ripoll said the Consultation Paper would provide the opportunity for stakeholders, franchisors and franchisees to closely consider the recommendations and provide input to the government in preparation for a regulatory impact statement.

The report makes 18 recommendations including:

  • strengthening the obligations of parties to act in good faith in a franchise;
  • a stronger enforcement regime including financial penalties for code breaches;
  • improving disclosure on issues such as online trading; and
  • better dispute resolution mechanisms including regulating attribution of costs to franchisees.

The Government is committed to providing certainty and confidence in the franchising sector and will use this consultation to frame its detailed response.

Media contacts: Minister's office 02 6277 7930
                          Parliamentary Secretary's office 02 6277 4934 

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