The Franchise Council of Australia is pleased with the outcomes and recommendations offered by franchising expert Alan Wein in his review of the Franchising Code of Conduct.

Michael Paul, chairman, FCA said the Wein Report represents the most comprehensive review of the code since its introduction in 1998.

“Pleasingly, but not surprisingly, the Wein Report has found that the Australian franchise sector operates well, and the Franchising Code of Conduct is ‘a robust model’ and ‘generally operates effectively within a very dynamic and difficult economic environment’,” he said.

Paul said the FCA will work alongside the government to ensure recommendations are implemented in a manner that “improves the regulatory framework, provides greater regulatory clarity and reduces compliance costs.”

“In particular we look forward to Governments at all levels uniting behind a single consistent federal regulatory framework for our dynamic sector,” he added.

The report revealed that an overwhelming number of submissions support the continuation of a national regulatory scheme.  

It read: ‘evidence clearly indicates that a national system reduces duplication, red tape, uncertainty, compliance costs and ensures franchisors are in the best position to develop and maintain an effective national business model.’

In his report, Wein said he would like to see franchisors and franchisees receive more pre-entry and ongoing education.

Paul supports this view, explaining “we have championed franchising education, and would be delighted to have government support to extend our pre-entry and ongoing educational initiatives.”

The Wein Report contains a total of 18 recommendations to the government. These include:

• The insertion of an obligation to act in good faith into the code.
• The introduction of civil pecuniary penalties for breaches of the code, which will make it easier for the ACCC to enforce code compliance.

“We congratulate Alan Wein on his comprehensive and thoughtful analysis,” added Paul.