Morrison government releases bill to increase transparency in franchising

0


The Morrison government is delivering on its electoral commitment to improve transparency in the franchise industry by developing a franchise business registry. Today he released draft amendments to the Franchise Code of Conduct to support the creation and operation of the Franchise Disclosure Registry.

The proposed changes follow the 2021-2022 budget commitment of $ 4.3 million for a new franchise disclosure registry to help potential franchisees make an informed decision before entering into a franchise agreement.

Minister Robert said the release of the proposed changes is an important step, building on reforms to the franchising code of conduct that came into effect on July 1 of this year.

“The franchise industry makes a valuable contribution to the Australian economy, and the Morrison government is committed to supporting the industry through increased transparency and accountability,” said Minister Robert.

“The local Australian franchise industry will always get better terms under the Morrison government, we continue to improve the industry and continue to listen carefully to the thousands of local franchise companies who need a helping hand.”

As part of the proposed reforms, the Register will be accessible to the public and free to access. Franchisors will be required to upload and publish information to the registry by October 31, 2022, which will help franchisees to perform due diligence and make informed business decisions.

The Exposure Draft legislation, the explanatory memorandum and a supporting guide are available on the Treasury website. Interested parties are encouraged to review the draft amendments as well as the accompanying guide, which describes the proposed features of the Register and consultation questions.

Stakeholders are encouraged to provide a response in response to the draft amendments and consultation questions to [email protected] by October 29, 2021.

Information on the reforms to the Franchise Code of Conduct which entered into force on July 1 is available on the Treasury website.

[ENDS]


Leave A Reply

Your email address will not be published.