News & Insights

The government has recently announced that another review into the Franchising Code of Conduct (Code) is likely to occur in the second half of this year.

As with previous franchising reviews, the Franchise Council of Australia (FCA) will communicate with the Federal Government in respect of the review and what changes may be required.

Franchising Code review imminent

The Code has had many amendments since its introduction. Some have brought quite substantial changes and introduced new aspects (eg. motor yehicle dealership provisions, key fact sheet, Franchise Disclosure Register). Others have been relatively minor as just adjusted content of the disclosure document.

The Government has confirmed that it has started the groundwork to conduct the next review of the franchising regulatory framework later this year.

With more details to come in the second half of this year, the review is likely to consider the newly implemented Franchise Disclosure Register and new car dealership protections, contained within the Code, as well as review the effectiveness of previous reforms.

Franchise Disclosure Register

The Franchise Disclosure Register (Register) went live in November 2022 and was implemented to improve transparency for potential franchisees.

The introduction of the Register made franchisors more accountable for demonstrating their commitment to transparency. The information the franchisors provide to the Register was intended to make it easier for potential franchisees to complete their due diligence on the franchise prior to signing up.

Due to the Register being very new, we expect that the Register will be a key part of the review.

Key Takeaways

• The government will review the Franchising Code of Conduct, including the Franchise Disclosure Register, new car dealership protections, and the effectiveness of previous reforms.
• The government will work with the Franchise Council of Australia to conduct the review.
• More information about the review is likely to come in the second half of this year.

Stay Tuned

Macpherson Kelley’s Franchise team will be watching all developments. Keep an eye out for further updates as more details are known.

The information contained in this article is general in nature and cannot be relied on as legal advice nor does it create an engagement. Please contact one of our lawyers listed above for advice about your specific situation.