The franchising industry has until 10 July 2009 for final submissions that will inform the Government’s response to the Parliamentary Joint Committee on Corporations and Financial Services inquiry into franchising, Opportunity not opportunism; improving conduct in Australian franchising.
The Government has released an options paper inviting final comment from participants in the franchising sector but has honed in on very specific questions.
Any potential change to the Franchising Code that may affect compliance costs and risks faced by franchisors and franchisees is a particular focus.
The questions cover four broad areas of reform: impact on franchisees of franchisor failure; establishment of a registration system for franchisors and collection of data about franchising; end of franchise term arrangements (e.g. giving franchisees advance notice that a franchise will not be renewed); insertion of a good faith requirement into the Code and issues about participation in mediation.
However the Government is putting aside the issue of penalties for breaches of the Code or the powers of the ACCC and these issues will be dealt with separately as part of the ACCCÍs inquiry into grocery prices.
The Government has said it will treat submissions in-confidence.
The options paper and information on how to submit comments is available at