The Federal Government has released a consultation paper after the completion of an independent review of the Franchising Code of Conduct.
The review, which was prepared by franchise expert Alan Wein, makes 18 recommendations, including the insertion of an obligation to act in good faith into the Code, and the introduction of civil pecuniary penalties for breaches of the Code.
There are also a number of recommendations aimed at addressing specific problematic areas, such as franchisor failure, simplifying compliance and improving regulatory certainty.
Several high profile retail groups in the appliance and electrical industry operate a franchise or franchise-like system, such as Harvey Norman, The Good Guys, Betta Home Living and Leading Appliances.
The Government is now calling for comments on the paper, which can be downloaded here. The recommendations need to be submitted to the Department of Industry, Innovation, Climate Change, Science, Research and Tertiary Education at franchisingcodereview@innovation.gov.au by 9 July 2013.
The Franchise Council of Australia will be playing a lead a role in the consultation process with the body already submitting a brief welcoming the recommendations made by Wein.
“The Franchise Council of Australia looks forward to working collaboratively with the Government during consultation and supporting its initial brief of the review,” Michael Paul, FCA chairman, said.
The review was first initiated by former Minister for Small Business Brendan O’Connor in January 2013.
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