The Franchising Code of Conduct is a mandatory industry code under the Competition and Consumer Act 2010. The Code regulates Australian franchisees and franchisors. The Australian Small Business and Family Enterprise Ombudsman’s Office provides free support and access to mediation services.
Treasury is responsible for engaging and consulting with Australia’s franchising sector. We ensure franchising policy remains fit for purpose, and that the sector operates efficiently.
The Minister for Small Business has policy responsibility for the Franchising Code of Conduct under the Industry Codes Policy Framework.
Franchising reforms
The Australian Government released amendments to the Franchising Code of Conduct on 1 June 2021.
The amendments to the Franchising Code of Conduct follow the Australian Government’s response to a parliamentary inquiry report on the effectiveness of the Franchising Code of Conduct and reflect further automotive franchising reforms that the Government announced on 12 March 2021.
As part of its response, the Australian Government improved access to information on franchising and has released a new Franchise Disclosure Register.
Additionally, the Australian Government has increased penalties for breaches of the Code to lift standards of conduct.
A range of consultations informed these reforms:
- 2021 - Franchising Disclosure Register
- 2021 - Automotive franchising
- 2020 - Draft amendments to the Franchising Code of Conduct
- 2020 - Draft automotive franchising amendments to the Franchising Code of Conduct
- 2019 - Inter-agency Franchising Taskforce consultation and issues paper
- 2018 - Regulation Impact Statement on the franchise relationship between new car dealers and manufacturers