Have you had your say on the proposed Franchise Disclosure Register?
Have you had your say on the Government’s planned Franchise Disclosure Register? Treasury is inviting comments on the recently released Exposure Draft legislation, Explanatory Statement, and accompanying guide.
The draft legislation outlines a legal framework for changes to the Franchising Code of Conduct so the Franchise Disclosure Register can be implemented.
An online portal is being developed to support implementation – it can be accessed through www.business.gov.au.
Government insists the Register will not be an endorsement of franchisors.
Treasurer Josh Frydenburg announced in the 2021 Budget the Register was set to be released in early 2022.
He said there will be a transition period to allow franchising businesses to understand the new requirements before the registry is mandated.
At the time, the Minister for Employment, Workforce, Skills, Small and Family Business, Stuart Robert, said the Government’s $4.3 million spend over four years to introduce the registry will “increase transparency and restore confidence in the sector”.
The proposed Register was raised by the parliamentary committee looking into the Effectiveness of the Franchising Code of Conduct, a long saga which concluded in 2019 and finally delivered some changes with revisions to the Code introduced on 1 July this year.
The Australian Small Business & Family Enterprise Ombudsman Bruce Billson was supportive of the changes and upcoming register.
“The new mandatory Franchise Disclosure Registry, which is scheduled for release in early 2022, is key to providing prospective franchisees with vital information needed prior to entering a binding franchise agreement,” he said in May 2021.
For more information on these documents and how to make a submission, visit the Treasury website.