The Licensing Task force is considering a licensing regime for the franchising sector.

The Competition and Consumer (Industry Codes-Franchising) Regulation 2014 (Code of Conduct) currently provides the regulatory framework for the franchising sector.

On 8 February 2024, the Government released an Independent Review of the Code of Conduct which was conducted by Dr Michael Schaper. One of the recommendations of the review suggested that a licensing regime be implemented to provide a more efficient and effective way to address issues in the sector without further regulatory burden.

In November 2024, the Government introduced a consultation paper proposing the incorporation of a licensing regime for the franchising sector.

The consultation paper notes that a licensing regime would be advantageous as it would encourage positive commercial relationships, fair trade and access to justice and competition within the franchising sector. However, the consultation paper also suggests the limitations of a licensing regime such as that it could increase the possibility of regulatory oversight.

The Government encourages that you provide a submission to the consultation process by Sunday 8 December 2024 if you would like to express your views on the proposed licensing regime.

Please visit the Treasury website to access the consultation paper. Submissions may be lodged electronically or by post however electronic lodgement is preferred.

If you would like to discuss any aspect of this topic please feel free to contact Alicia Hill.

Alicia Hill
Principal
T +61 3 9611 0180 | M +61 484 313 865
E ahill@sladen.com.au

Ellise Kotsu
Law Clerk
T +61 3 9611 0198
E ekotsu@sladen.com.au