Franchising Code Changes Lead To Increase In Disclosure, But Critic Slams “Window Dressing”

Small Business Minister Craig Emerson’s long-awaited changes to the Franchising Code have been introduced into Parliament, with a focus on increasing the level of disclosure franchisors need to make to franchisees and prospective franchisees.

But while Emerson says the changes will help provide “certainty” for the sector, outspoken franchisee advocate Frank Zumbo has described the amendments to the Franchising Code as “window dressing”.

At the heart of the reforms is a change aimed at tackling one of the biggest sources of conflict in the sector – what happens when a franchise agreement ends.

Under the new provisions of the Code, a franchisor will be required to give franchisees six months notice of their decision to either renew or not renew the franchise agreement. Read more.

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