The Australian government has pledged $7.1 million over two years to help the Australian Competition and Consumer Commission enforce the Franchising Code of Conduct.
The funding will increase the ACCC’s enforcement capabilities and enhance its engagement and education activities.
Government’s announcement of the multi-million dollar fund comes just weeks ahead of the revised Franchising Code coming into effect on 1 April 2025.
Minister for Small Business, Julie Collins, said “More active enforcement and compliance work by the ACCC will help target bad behaviours without increasing the regulatory burden for those in the sector already doing the right thing.”
Jay Westbury, CEO of the Franchise Council of Australia, said the organisation is supportive of the ACCC’s role in regulating the sector and the Franchising Code of Conduct.
“Being properly resourced to investigate inappropriate or non-compliant behaviour is always important to ensure that franchising remains a vibrant contributor to the Australian economy,” Westbury said.
“We will be working with government via a robust and appropriate consultation process as outlined by the Minister to consider the need for further changes to the Franchising Code that is yet to be adopted (1 April 2025).”
Westbury said the FCA remains “intrigued” about the concept of a lack of a fair playing field as outlined in the Minister’s release.
“There was no mention, nor any recommendations made to address this by the Schaper Review which led to the changes to the 2024 Franchising Code,” he said.
The Government has revealed it will also extend protections from Unfair Contract Terms and Unfair Trading Practices to businesses regulated by the Franchising Code, following consultation.
Westbury said the FCA “categorically rejects” that unfair contract terms and unfair trading practices referenced in relation to automotive dealerships is a sector-wide issue in franchising.
