f r a n c h i s e c o u n c i l o f aust r a l i a ( FCA )
FRANCHISE CODE CHANGES INTRODUCED AS BUSINESSES RECOVER As Australia’s peak industry association for the franchising sector, the FCA responded positively overall to the Franchising Code of Conduct reforms announced in June by the Federal Government. Given the dramatic impacts of COVID on small businesses across Australia, the FCA was reassured by the Federal Government’s approach to introducing the changes in the context of today’s economic reality. The past eighteen months has proved to be the most difficult economic environment Australian businesses have ever experienced. The FCA was wary of further business failures that may arise where there are rapid or overly punitive regulatory changes. The government appears to have taken into account the significant reforms already introduced by the FCA in response to the
“Member input is important to the FCA, especially feedback on the key issues for our sector in implementation of specific aspects of the revised Franchise Code of Conduct.” Mary Aldred | CEO | Franchise Council of Australia
issues raised through the 2018 parliamentary inquiry into the franchise code of conduct and subsequent taskforce. The FCA consulted extensively with franchisor and franchisee members as part of the industry consultation process. This included the FCA’s Policy Advisory Committee, a group comprising franchisors, franchisees and advisers, and the FCA’s Franchisee Advisory Committee. In addition, the FCA’s Legal Committee, representing the majority of specialist franchise lawyers in Australia, was asked to provide feedback on any potential excessive compliance costs or unintended consequences.
14 Business Franchise Australia and New Zealand
The Government consulted heavily with the FCA through development of the new regulations and is aware of not only the steps taken to introduce new measures to ensure compliance, but also the actively supportive role played by franchise networks and the FCA to deal with COVID-19 and assist franchises and small business through the challenges. The FCA has worked hard to address the key themes that arose in the 2018 Parliamentary Inquiry. On the need to better engage franchisees, the FCA made significant changes. The FCA now has franchisees represented on its Board and has established a Franchisee Advisory
