AusLeisure

Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Bruce Billson has welcomed the reforms to the Franchising Code of Conduct announced by the Federal Government budget as helping to “level the playing field across the franchising sector”.

Detailed on 1^st June and set to come into effect from 1st July 2021, Billson says the reforms will go a long way to addressing the power imbalances that often exist between franchisees and franchisors, particularly when disputes arise.

Bilson advised “these reforms are an important step towards getting the balance right for our small and family businesses in the franchising sector.

“In particular, providing greater powers to my office to appoint an independent arbitrator when both parties agree, will help resolve disputes in a cost-effective and timely manner, while crucially protecting business relationships. This supports a no-surprises, collaborative and mutually respectful commercial relationship between franchisees and franchisors.

“Allowing my office to facilitate group mediation when several franchisees are in a similar dispute with the same franchisor, is another critical reform that will help restore confidence in this sector.

“The changes to the Code mean prospective and current franchisees will be better armed with vital information needed to run their business.

“This includes more transparency around the marketing fund, with an annual financial statement which sets out meaningful information regarding expenditure. Greater visibility around rebates and leasing arrangements will be achieved by these reforms.

“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.

“Over the past six months my office has fielded over 240 calls from franchisees seeking information regarding disputes under the Franchising Code of Conduct.

“This demonstrates just how critically important it is for prospective franchisees to know exactly what they are getting into before signing on the dotted line.

“Ultimately these much-needed reforms to the Franchising Code of Conduct will play an important role in making Australia the best place to start, grow and transform a business.”

Click here for more information on the Australian Competition and Consumer Commission website.

Related Articles

15th June 2021 - Stepz Fitness to open two new hybrid model gyms

25th May 2021 - Jump! Swim Schools franchisor fined $23 million with founder banned from starting new franchises

19th May 2021 - Body Fit Training named Asia-Pacific Franchise of the Year at Singapore’s Fit Summit Conference

17th May 2021 - Viva Leisure ‘confident’ that it is dealing with franchising appropriately

14th May 2021 - Federal Government to create new franchise disclosure registry

12th May 2021 - 9Round kickboxing fitness concept wins Global Franchise Award

10th May 2021 - Belgravia Group launches franchise model for BK’s Gymnastics brand

3rd May 2021 - Birthday parties drive Ninja Parc franchises ongoing growth

2nd May 2021 - Xponential Fitness’ StretchLab signs master franchise agreement for Australian studios

28th April 2021 - Collective Wellness Group buys XTEND Barre brand rights to drive Australian growth

25th March 2021 - Victorian gym owner takes legal action against insurer for refusing Coronavirus compensation payout

24th March 2021 - SpeedFit offers new part ownership model to potential franchisees 

22nd February 2021 - FRANdata gives Snap Fitness 5-Star franchise rating

12th January 2021 - FITREC references Fair Work Ombudsman advice in ongoing dispute over registration of industry professionals

29th December 2020 - Ombudsman’s report calls for action in addressing ‘national crisis’ in insurance coverage

14th December 2020 - Belgravia Health and Fitness announces new Genesis franchisee in Cairns

14th August 2020 - Legal action commenced against Snap Fitness Sydney franchisee

11th June 2020 - F45 Training partners with Glofox for international franchisee expansion

20th March 2020 - Step Into Life exercise franchise facing potential collapse

1st August 2019 - Asia-Pacific markets targeted by USA fitness franchises

31st July 2019 - Anytime Fitness recognised as ‘top global’ franchise for 12th consecutive year

18th June 2019 - Jump! Swim Schools faces court over ACCC claims it misled franchisees

8th May 2018 - Public notice from Paul Sadler Swimland clarifies Fair Work Ombudsman agreement

8th August 2016 - Fair Work Ombudsman steps in to stop Canberra gym underpaying personal trainer

20th December 2015 - Fair Work Ombudsman orders Launceston fitness club owner to compensate instructor

12th April 2011 - Fair Work Ombudsman focuses on Queensland fitness

---

Support our industry news service
We hope that you value the news that we publish so while you're here can we ask for your support?

As an independent publisher, we need reader support for our industry news gathering so ask that - if you don't already do so - you back us by subscribing to the printed Australasian Leisure Management magazine and/or our online news.