Code of conduct a boost to franchisees

FRANCHISEES have been given more bargaining power against the big companies that own the brands, under a new code of conduct.

Those who benefit could run any sort of franchise, from retail to local restaurant chain outlets.

Small Business Minister Bruce Billson released the code of conduct on Thursday.

He said it would strengthen locals' negotiating positions while saving on administration.

He said it would also introduce statutory obligations on franchisees and franchisors to "act in good faith in their dealings with the other".

The government estimates the code will also reduce the administrative burden across the franchise sector to up to $8.6 million a year.

It will also introduce more transparency on how marketing funds are used and new civil penalties for serious breaches of the code.

- APN NEWSDESK


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