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Question and Answer Tracking Details

4997 - RIGHTS OF FRANCHISEES

Hornery, Sonia to the Minister for Innovation and Better Regulation
  1. How does the Government protect the rights of franchisees?
  2. How are franchisees protected from harsh contracts and possible unreasonable practices by franchisors in the following circumstances:

    1. Franchisors stipulating what brands and vendors of certain supplies the franchisee must use while at the same time the franchisor receives commissions from those vendors?

    2. Franchisees being obliged to contribute a certain percentage of their daily takings to the franchisor as a marketing levy on top of the franchising fee?

    3. Franchisors not having to expend the marketing levy on promotion and advertising so it becomes additional income to the franchisor?
Answer -

The Franchising Code of Conduct is made under the Competition and Consumer Act 2010 (Cth), which is the responsibility of the Commonwealth Minister for Small Business, the Hon Michael McCormack MP.

The Franchising Code of Conduct is administered by the Australian Competition and Consumer Commission (ACCC).  A new Franchising Code of Conduct applied after 1 January 2015.

Minister McCormack's office can be contacted on (02) 6277 7610 or http:⁄⁄www.treasury.gov.au⁄Forms⁄Ministerial-Corresponde nce, and the ACCC can be contacted online via http:⁄⁄www.accc.gov.au⁄contact-us⁄contact-the-accc or 1300 302 021 for small businesses or 1300 302 502 for consumers.

Question asked on 7 March 2017 (session 56-1) and printed in Questions & Answers Paper No. 110
Answer received on 11 April 2017 and printed in Questions & Answers Paper No. 120

The Parliament of New South Wales acknowledges and respects the traditional lands of all Aboriginal people, and pays respects to all Elders past and present. We acknowledge the Gadigal people as the traditional custodians of the land on which the Parliament of New South Wales stands.