Report on the Franchising Code of Conduct

On 1 December 2008, the Parliamentary Joint Committee on Corporations and Financial Services reported on its inquiry into the Franchising Code of Conduct (Code) conducted earlier in 2008. Unlike the 2006 'Matthews report' which focused on franchisor disclosure, the report represents a detailed review of the Code in the context of the franchising industry generally.

The Committee made 11 recommendations in the report. If accepted, the changes will:

• Impose significant additional administrative and disclosure requirements for franchisors.
• Introduce a new overarching standard of 'good faith'.
• Impose stricter penalties for non-compliance.