Improving transparency and business relationships in franchising is well underway, with the Morrison Government's Franchising Taskforce commencing the next stage of consultation on the future regulation of the sector.
The Franchising Taskforce is seeking feedback on potential options to address concerns identified in the franchising sector, through the release of a draft Regulation Impact Statement (RIS).
Minister for Employment, Skills, Small and Family Business, Senator the Hon Michaelia Cash, said improving the regulatory framework to address concerns for franchisees and franchisors is a priority.
"I was pleased to see constructive feedback from all stakeholders of the franchising sector following the release of the issues paper in August," Minister Cash said.
"With an annual economic contribution of more than $180 billion, the franchising sector forms a critical part of the Australian economy.
"That's why the Morrison Government is committed to maintaining the balance between effective standards and compliance, while ensuring businesses continue to innovate, develop and employ more Australians."
The RIS follows the release of the issues paper on 23 August, which sought feedback on the recommendations in the Fairness in Franchising Report of the Parliamentary Joint Committee on Corporations and Financial Services.
Assistant Treasurer, the Hon Michael Sukkar MP, said consultation with industry and stakeholders so far has been in-depth and thorough.
"Feedback on the issues paper indicated that franchisors and franchisees are seeking to improve business relationships and are actively engaging with the Franchising Taskforce to address concerns in the sector," Minister Sukkar said.
"Healthy franchise relationships enable franchisors and franchisees to work together for mutual benefit."
The Franchising Taskforce is accepting submissions on the RIS until 6 December 2019.
The RIS is available on the Department of Employment, Skills, Small and Family Business website at www.employment.gov.au/franchising-taskforce.
