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
Law à la Mode — April 2014: fashion flair transforms wearable technologies; delivering IT services in the retail sector; and more
DLA Piper has released the April 2014 issue of its Law à la Mode publication.
Insurance and Reinsurance Newsletter: April 2014 — Italy: new regulations on complaints management; and more
On 1 April 2014, the draft measure containing amendments to ISVAP regulation no. 24 on complaints handling was published on the IVASS website.
Analysis from The Lawyer
A new breed of lawyer is smoothing the path for companies entering emerging or unstable jurisdictions
The fragile refinance market is back in rude health and US-style alternative lenders are stepping up with innovative structures to sustain the recovery