Submission to Franchising Code of Conduct - Exposure Draft

04 November 2024

The Business Council of Australia (BCA) welcomes the opportunity to make a submission to the Treasury consultation on the proposed Franchising Code of Conduct exposure draft (draft Code).

The BCA acknowledges the need to update the Franchising Code of Conduct however our members have indicated that they are concerned about a some of the proposed provisions. In particular, sections 42 and 43 of the proposed Code are problematic, create uncertainty around their application to specific franchise contexts and in turn create substantial compliance risk.

This makes it more difficult for franchisors to meet their obligations under the draft Code, and also risks making franchises less attractive leading to potential harm across the sector. They also create great uncertainty for franchisees given many of the concepts used are very broad and often undefined.

Our submission identifies our concerns over:

  • Section 42 - Early termination
  • Section 43 - Return on investment
  • Proposed penalties
  • Interaction with other legislative obligations
  • Section 63, and
  • Transition arrangements

Read our full submission here.

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