The maximum penalty available for breaches of certain provisions, including those targeting the automotive sector, will increase to $10 million (or three times the benefit gained, or 10 per cent of annual turnover) for corporate bodies and $500,000 for unincorporated bodies. Penalties for other provisions in the Franchising Code of Conduct have been doubled to 600 penalty units ($133,200).
The Minister for Employment, Workforce, Skills, Small and Family Business, Stuart Robert, said the government has already implemented extensive reforms to the Franchising Code of Conduct.
The government’s 2021 franchising reforms will improve access to information for franchisees and prospective franchisees, and are better at balancing the rights of franchisors and franchisees, and improving access to justice for small-business franchise operators.
The franchising industry is worth $155 billion to the national economy and employs over 500,000 Australians across a range of industries.
Further information regarding the new penalty provisions can be found at www.legislation.gov.au/Series/F2014L01472/Amendments.
