iscover Franchise feedback sought as reform looms
RegulationAccountants and their small business clients have been urged to give feedback on the franchising sector as the Australian Small Business and Family Enterprise Ombudsman pushes for reform.
The Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, has called for regulatory reform in the franchising sector that encourages genuine cooperation between franchisors and franchisees and effectively punishes bad behaviour.
“One of the services we offer is assistance with franchising disputes, and we hear firsthand the issues that are affecting franchisees and franchisors every day,” Ms Carnell said.
“There is a need for urgent action in reforming the franchising sector to create a level playing field for franchises and franchisors.
“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.”
Earlier this year, Parliamentary Joint Committee on Corporations and Financial Services released its Fairness in Franchising report, highlighting a systemic lack of transparency and accountability in franchising and a breakdown in the operating relationship of many franchise models.
The government has now released its Regulation Impact Statement (RIS) for consultation and is seeking feedback from stakeholders 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,” Ms Carnell said.
“Small businesses that want to have their say on the future of the franchising sector can access the RIS online and make a submission.
“It is essential we see effective and timely reform in the franchising sector that is squarely focused on fairness and creating mutually beneficial business relationships.”
Jotham Lian
Jotham Lian is the editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.
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