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Ripoll Pushes Good Faith and Penalties

The push for franchise reform in Australia began almost 10 years ago and today major ground has been made with the anticipated introduction of good faith obligations and penalties. A breach of the Australian Franchising Code of Conduct could now mean big trouble; or maybe not.

There can be no doubt that the new changes are a step in the right direction and especially when compared to the 2010 window dressing reform that wasted many years of effort and so much taxpayer money and in the end put in place nothing that improved the performance and reputation of the Australian franchising industry.

The Government is determined to implement these changes to provide national consistency in franchising regulation in Australia and ensure the sector continues to grow and diversify by enhancing the confidence of its participants.  Bernie Ripoll MP

The sticking point for franchisees and independent franchising experts in Australia now becomes just how franchisees who have been strategically drained of their finances can access an expensive legal system to take advantage of the new reform. While a Franchising Tribunal and a Franchising Ombudsman were amongst early recommendations from many stakeholders these appear to have been ignored as potentially being just too effective against rogue franchisors.

The Australian Competition and Consumer Commission will have greater powers to act against abusive franchisors but it seemingly won't be getting the necessary funding needed to establish these new changes as having some deterrent value. The reality could very well be that good faith and penalties rarely get taken out for a ride either by franchisees or the ACCC. But it is the thought that counts; right! 

More detail will appear on this Page in due course.

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About Ray Borradale

Ray Borradale's picture

Public Profile

Over forty years experience in Small Business and more than twenty-five years in franchising operations as a franchisee and employed by three franchisors, mostly in operations.

I have dedicated more than ten years and over 15,000 hours in the pursuit of quality franchising and exposing franchisor abuse of franchisees while advocating for the introduction of franchise relationship Law and the levelling of the dispute processes between bigger business and small business.

Contact: rayborradale@yahoo.com.au

Area of Interest
Franchise Operations