Home' The Franchise Review : September 2015 Contents THE FRANCHISE REVIEW
Representation, education and gaining
positive recognition of franchising as a
business model remain three of the key
focuses for the Franchise Council of
Australia (FCA), and the Association has
been busy on all fronts in recent times.
Representation: unfair contracts legislation
The FCA is continuing its efforts to ensure that there are no
negative impacts on franchising from the federal government's
proposed extension of unfair contracts legislation to small
Essentially, the federal government is committed to delivering
on its election promise to introduce legislation to prohibit 'unfair
contract terms' in 'standard form contracts'. Though this is
a complex issue with several factors at its core, the FCA has
sought to show that a typical franchise agreement should not
be considered a standard form contract.
The FCA's efforts to ensure fair outcomes for franchising in
the proposed laws have included making submissions on the
proposed legislation, and meeting with Small Business Minister
the Hon. Bruce Billson MP to discuss the Association's
concerns regarding the draft legislation. I am pleased to report
that the discussions with the Minister were productive, and that
the Minister was receptive to the Association's viewpoint.
Our concerns, which are outlined in the FCA's submission
to the government on the proposed legislation, are chiefly
that the legislation will undermine the certainty in franchising
arrangements, and that it will further inhibit small business
access to finance.
In the submission, the FCA has also recommended that if
the legislation is enacted, the franchise sector should be
exempted, as we already have a comprehensive regulatory
framework that includes disclosure, a mandatory 14 day period
to facilitate due diligence and advice, advice certification
requirements, and a cooling off period. In light of this,
franchise agreements should not fairly be at risk of being
considered 'standard form contracts'.
At the time of writing, the proposed legislation was before the
Federal Parliament. The FCA remains hopeful that the logic
of its submission, and the good relationships the FCA enjoys
with the Small Business Minister, Treasury and the Australian
Competition and Consumer Commission (ACCC), will ensure
that amendments are made
that preserve the integrity of
the contractual regime that
Excellence in Franchising
Across July and August, the
FCA celebrated franchising
success at the SEEK
Commercial FCA Regional
Excellence in Franchising
Awards in Brisbane, Sydney,
Perth, Melbourne and
Adelaide. I would like to add
my congratulations to all the regional award winners for 2015.
Franchising brings so much benefit to the vast majority of
franchisees, and it's pleasing to see this recognised at the
Regional Awards. The passion of all of the Regional Award
winners and finalists was obvious to all, and this year, once
again, there was strong competition across all categories. The
awards provided entrants with a valuable opportunity to reflect
on their own achievements, systems and processes as part of
the submission process.
You can find out more about the Regional Award winners and
all the action from the Awards events later in the magazine.
The regional winners are now off to the MYOB FCA National
Awards, which will be presented at the National Awards Night
on the Gold Coast on 13 October.
Education: National Franchise Convention 2015
The importance of staying up to date with key developments
in the franchising sector cannot be emphasised enough for
franchisors and their head office staff. The beauty of the
National Franchise Convention (NFC15) is not just in the
packed program, through which you will hear from keynote
speakers as well as franchise executives in concurrent and
workshop sessions, but also in the plentiful opportunities to
network with your fellow franchise professionals.
There is as much to be gained from these informal
conversations, and the ability to share ideas and make
connections in a non competitive environment, as there is from
the formal conference program, so I would encourage you all to
attend NFC15 at the RACV Royal Pines on the Gold Coast from
I hope to see you there.
A message from the
BY KYM DE BRITT, GENERAL MANAGER, FRANCHISE COUNCIL OF AUSTRALIA
Kym De Britt
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