The Minister for Small Business, the Hon Brendan O’Connor, has appointed Mr Alan Wein, an experienced franchise mediator, lawyer and small business expert to chair the inquiry. Submissions are due by February 15, 2013 and a report outlining findings and recommendations is due within three months from the launch of the Inquiry.

The Inquiry aims to establish the effectiveness of amendments made to the Franchising Code of Conduct in 2008 and 2010.

 

Mr O’Connor said the primary purpose of the review was to verify, after a reasonable implementation period, that the amendments to the Franchising Code of Conduct made in 2008 and 2010 were working as intended.

“The franchising sector is an important part of Australia’s economy,” Mr O’Connor said.

“It comprises around 73 000 franchises, with an annual turnover of more than $130 billion and employs more than 400,000 people.”

Mr O’Connor said the review would consider issues including:

Questions of good faith in franchising,

The rights of franchisees at the end of their franchise agreements including recognition for any contribution they have made to building the franchise, and

The operation of the Competition and the Consumer Act 2010 with respect to enforcing the code.

“We undertook to review the amendments to the Franchising Code in 2013, when the last changes were announced in 2010,” Mr O’Connor said.

“Participation and evidence from the franchising sector would be welcomed and a discussion paper has been drafted to assist people wanting to make submissions to the review.”

Mr Alan Wein, an experienced franchise operator and small business adviser, has been appointed to conduct the review.

Mr O’Connor congratulated Mr Wein on the appointment.

“Mr Wein brings a wide variety of talent, skills and experience through an impressive history of personal achievement,” Mr O’Connor said.

“He has a thorough understanding of the small business sector from his involvement with the Victorian Small Business Advisory Council and has extensive experience in mediation and commercial law, making him ideal to conduct this review.”