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The Franchising Code of Conduct 2023 Review

Thursday August 17, 2023

The Franchising Code of Conduct 2023 Review

The Franchising Code of Conduct (Code) is due to expire in 2025 with the sunset date of 1 April 2025. It’s no April fool’s joke, the Code which governs the 170-billion-dollar franchise sector will expire in 19 months and on 15 August 2023 the government announced that Dr Michael Schaper will undertake the review of the Code in accordance with the Terms of Reference which can be found online: https://treasury.gov.au/review/franchising-review/terms-reference. Dr Schaper currently chairs Western Australia’s Gaming and Wagering Commission.

The review will evaluate previous reforms and bring several reviews under one umbrella, including statutory reviews of the Franchise Disclosure Register. Dr Schaper will deliver a review report and recommendations to the Minister for Small Business, the Hon Julie Collins MP, following public consultation as well as conferring with the Australian Association of Franchisees.

The Hon Julie Collins MP stated that the review would determine whether the framework promotes positive commercial relationships between franchisors and franchisees.

The regulatory framework that underpins the relationship between franchisors and franchisees is critical to ensuring confidence in the sector. It should promote positive commercial relationships, fair trade and not unduly restrict competitive conduct.

The review process is to commence in the second half of 2023 and a report will be provided to the Minister for Small Business, the Hon Julie Collins MP, no later than the end of December 2023.

If you are a franchisee or franchisor and would like any franchising assistance, please do not hesitate to contact our office on 03 9550 4600 to speak with one of our franchising specialists.