Government seeks feedback on franchising reform

The Franchising Taskforce is seeking feedback on potential options to address concerns identified in the franchising sector, through the release of a draft Regulation Impact Statement (RIS).

Minister for Employment, Skills, Small and Family Business Michaelia Cash said improving the regulatory framework to address concerns for franchisees and franchisors is a priority.

“I was pleased to see constructive feedback from all stakeholders of the franchising sector following the release of the issues paper in August,” Ms Cash said.

The RIS follows the release of the issues paper on 23 August, which sought feedback on the recommendations in the Fairness in Franchising Report of the parliamentary joint committee on corporations and financial services.

Assistant Treasurer Michael Sukkar said consultation with industry and stakeholders so far has been in-depth and thorough.

“Feedback on the issues paper indicated that franchisors and franchisees are seeking to improve business relationships and are actively engaging with the Franchising Taskforce to address concerns in the sector,” Mr Sukkar said.

“Healthy franchise relationships enable franchisors and franchisees to work together for mutual benefit.”

The Franchising Taskforce is accepting submissions on the RIS until 6 December 2019.

Earlier this week, the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) called for urgent action in reforming the franchising sector to create a level playing field for franchisees and franchisors.

“The franchising sector is worth more than $180 billion to the Australian economy and the 97,000 franchised businesses in Australia employ close to 600,000 people,” said ASBFEO Kate Carnell.

“This is why it is important to strike the right balance between regulation and allowing small businesses to grow and prosper.”

Ms Carnell called on small businesses in the franchising sector to get involved in the government's consultation process to ensure their voice is heard.