Qbr:
Regulations to boost transparency in the Franchising Code of Conduct (the Code) and increase the quality and timeliness of information provided to franchisees were tabled in Federal Parliament yesterday.
These changes follow the review by Graeme Matthews of the disclosure provisions of the Code. It focused on improving the ‘up-front’ information provided to current and prospective franchisees. This review attracted more than 70 submissions.
The changes, decided upon through extensive industry consultation, will come into effect on March 1, 2008 allowing franchise systems time to incorporate the changes into their operations.
“This is a great step forward for small business,” Small Business Minister Fran Bailey says.
“Prospective franchisees will have greater access to better information before signing on the dotted line. This will assist people to make the right decisions before investing large sums of their money in a business. These changes will boost the long term sustainability of the industry.”
The Code requires transparency and fairness in the relationships between both prospective franchisees and current franchisees, and their franchisors.
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