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12 November 2019

Small businesses urged to have a say on franchising sector reforms

Small businesses in the franchising sector are crying out for meaningful reform that encourages genuine cooperation between franchisors and franchisees.

The Parliamentary Joint Committee report, Fairness in Franchising, highlighted a systemic lack of transparency and accountability in franchising.

There has been a breakdown of operating relationships in franchise models.

It is clear there is a need for urgent action in reforming the franchising sector to create a level playing field for franchises and franchisors.

The reforms need to be squarely focussed on fairness and creating mutually beneficial business relationships.

The franchising sector is worth more than $180 billion to the Australian economy and the 97,000 franchised businesses in Australia employ close to 600,000 people.

This is why it is so important to strike the right balance between regulation and allowing small businesses to grow and prosper.

The federal government has opened the next stage of consultation on the future regulation of the sector and is seeking feedback on the draft Regulation Impact Statement (RIS) by 6 December 2019.

The release of the RIS gives the franchising sector the chance to create meaningful reform; it’s critical that small businesses in the franchising sector get involved in this consultation process to ensure their voice is heard.

Small businesses that want to have their say on the future of the franchising sector can access the RIS online and make a submission.

In the meantime, any small business operator in a franchising dispute can contact my office or jump online.