On 14 March 2019, the Parliamentary Joint Committee on Corporations and Financial Services (Committee) published the report, ‘Fairness in Franchising’ (Report), outlining the findings of its inquiry into the operation and effectiveness of the Franchising Code of Conduct (Franchising Code).
Burning issues uncovered
The Committee found that:
‘The current regulatory environment has manifestly failed to deter systemic poor conduct and exploitative behaviour and has entrenched the power imbalance.
The actions of certain franchisors have caused enormous reputational damage to the sector. This needs to be rectified for the benefit of the entire franchising industry. The proposed reforms outlined by the committee in this report are substantial, and many.’