Government announces Franchising Code changes

Written on the 6th of November 2009 by Jason Gehrke

Key changes will be made to the Franchise Code of Conduct, and the Trade Practices Act, following the long-awaited Government response to the 2008 Federal Franchise Inquiry.

The seven changes, announced by Australian Federal Small Business Minister Craig Emerson yesterday, include:

1. The introduction of fines and penalties for unconscionable conduct and false and misleading representations up to $1.1 million for corporations and $220,000 for individuals; 
2. Random audits of franchise systems to be conducted by the Australian Competition and Consumer Commission (ACCC);
3. Public warnings about rogue franchisors;
4. An acknowledgement of good faith in relation to franchise agreements; 
5. A requirement to clarify end of term arrangements, including mandatory period of notice of renewal; 
6. Provision to include all affected franchisees of a group to be included in ACCC actions; 
7. The creation of an expert panel to advise on inappropriate franchising behaviours to be covered by the Code, with particular reference to: unforeseen capital expenditure; unilateral contract variation; attribution of legal costs; confidentiality agreements; and franchisor-initiated changes to franchise agreements when a franchisee is trying to sell the business.

More detailed information on each key change is available from the Minister’s office online  or in the Government's media release and the Franchise Forum on November 18 in Brisbane.

Franchise Forum now includes Code change update, November 18

As a result of the Franchising Code changes announced by Dr Emerson the program for Franchise Forum 2009: How the best thrive in any environment, will now include discussion and expert opinion on the implication of the Code changes for franchisors and franchisees.

The Forum, on Wednesday November 18 in Brisbane at South Bank, will also include a presentation from ACCC Deputy Commissioner Michael Schaper.

Other Franchise Forum 2009 speakers include:

• Kleenmaid receiver and Deloittes partner Richard Hughes
• Eagle Boys Pizza founder and author Tom Potter
• Franchise Food Company executive chairman and former Brumbys Bakeries managing director Michael Sherlock
• Gloria Jeans Coffees global capability manager Karli Furmage
• Mortgage Choice Head of Franchising Debbie Ennis, among others.

Franchise Forum topics to be presented include:

• How to beat your competitors with innovation and guerilla marketing
• How to adapt your franchise model in changing times - and thrive! 
• Opportunities in the new trend towards part-time franchise businesses 
• Inside the collapse of Kleenmaid and Kleins: Case studies of franchise insolvencies 
• Work versus lifestyle: Insights on how franchisors and franchisees work to get the balance right 
• How to maximise profits for franchisees and raise capital for system growth
• The six factors of outstanding franchise success

Limited registrations are still available for the Forum from $395.To book, click here to register online for the Franchise Forum 2009.