Coalition’s review of the franchise sector means potential penalties for frachisors but may also deliver national consistency
By Judith Miller, Cynthia Sica and Rose Bollard
Consistent with its pre-election campaign promise, the coalition government has announced that this year it will review and amend the Franchising Code of Conduct to improve protections for small business franchisees. It will implement some recommendations made in the 2013 Wein review and amendments may include the introduction of penalties of up to $50,000 (£27,000). If successful, this will be the first time that penalties have been introduced into the compulsory industry code.
As we reported last year, the code was recently subject to a major review and the previous federal labour government subsequently released a response to the review, accepting in full or in principle the majority of the recommendations made. However, due to the timing of the 2013 election, the proposed changes were never legislated. The current government is now eager to introduce a number of changes to the code to assist franchisees who frequently complain of a significant imbalance of power in their relationships with franchisors.
Small-business minister Bruce Billson has cited the following as key issues to address in franchising regulation…
If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
Be Global is DLA Piper’s snapshot of key global employment law developments designed to help you identify legal hotspots across your global operations.
The US Department of Treasury’s Office of Foreign Assets Control has issued additional sanctions targeting certain Russian banks, energy and defence companies.
Analysis from The Lawyer
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.
A new breed of lawyer is smoothing the path for companies entering emerging or unstable jurisdictions