Inquiry into Franchising Code of Conduct
Last week the Parliamentary Joint Standing Committee on Corporations and Financial Services announced they were conducting an inquiry into franchising.
This is a federal level inquiry and is Australia wide.
Franchisors and their lobby groups will continue their efforts to convince the government that nothing is wrong in franchising. It is essential that the real picture is presented to the Government, as this will be the last opportunity for many years.
Current franchisees who are concerned about their lack of protections, and former franchisees who have been the victims of opportunistic franchisors should all make a submission stating their concerns and experiences.
If people do not wish to make a submission directly, I will collate and forward their experiences to the inquiry. I can be reached at franchiseinquiry@hotmail.com if you need assistance or have any questions.
Regards,
Deanne de Leeuw
The Terms of Reference are:
On 25 June 2008 the Committee resolved to inquire into the Franchising Code of Conduct and related matters. The Franchising Code of Conduct is a mandatory industry code established under section 51AE of the Trade Practices Act 1974.
The terms of reference are:
The Committee is to inquire and report on the operation of the Franchising Code of Conduct, and to identify, where justified, improvements to the Code, with particular reference to:
1. the nature of the franchising industry, including the rights of both franchisors and franchisees;
2. whether an obligation for franchisors, franchisees and prospective franchisees to act in good faith should be explicitly incorporated into the Code (having regard to its presence as an element in paragraph 51AC(4)(k) of the Trade Practices Act 1974);
3. interaction between the Code and Part IVA and Part V Division 1 of the Trade Practices Act 1974, particularly with regard to the obligations in section 51AC of the Act;
4. the operation of the dispute resolution provisions under Part 4 of the Code; and
5. any other related matters.
The Committee invites submissions by 12 September 2008. The Committee will report by 1 December 2008.
Please send submissions to corporations.joint@aph.gov.au or by post to -
Committee Secretary
Parliamentary Joint Committee on Corporations and Financial Services
Department of the Senate
PO Box 6100 Parliament House
Canberra ACT 2600
Emailed submissions should include full name, address and phone contact details so we can verify them.
For further information please contact the committee secretary on 02 6277 3583 or at corporations.joint@aph.gov.au