Hospitality

Franchise Disclosure Registry to help restore confidence in sector

admin — Fri, 10 Dec 2021 03:41:34 +0000

Franchise Disclosure Registry to help restore confidence in sector admin Fri, 12/10/2021 - 14:41

13 May 2021

The Australian �Թ�� and Family Enterprise Ombudsman (ASBFEO) Bruce Billson has welcomed plans to establish a new mandatory Franchise Disclosure Registry, saying it will provide prospective franchisees with vital information needed prior to entering into a binding franchise agreement.

Mr Billson says the national registry, to be released next year, will require franchisors to lodge disclosure documentation about their franchise annually. These documents will be publicly available through the registry.

“There is a clear need of greater awareness in the franchise sector and this registry will certainly help restore confidence in this sector,” Mr Billson says.

“My office has advocated strongly for the implementation of this registry to improve transparency of franchise operations, so prospective franchisees are properly informed before signing a franchise agreement.

“Over the past six months my office has fielded over 240 calls from franchisees seeking information regarding disputes under Franchising Code of Conduct.

“This demonstrates just how critically important it is for prospective franchisees to know what they are getting into before signing a franchise agreement.

“The Franchise Disclosure Registry will be publicly available, to help prospective franchisees undertake vital due diligence that is necessary before entering into a franchise agreement.

“The cost of purchasing and setting up a franchise can be very significant, so it makes good business sense to do your homework first.

“As part of that due diligence, it is important to seek independent legal and business advice before making that substantial investment.

“Prospective franchisees need to ensure they are aware of a range of key ongoing costs associated with running the business such as wages, rent and inventory.”

The Franchise Disclosure Registry is scheduled for release in early 2022. There will be a transition period to allow franchising businesses to understand the new requirements before the registry is mandated.

Anyone involved in a franchise dispute under the Code is encouraged to contact ASBFEO for assistance on 1300 650 460 or email info@asbfeo.gov.au

Franchising Code reforms help level playing field for franchisees

admin — Fri, 10 Dec 2021 03:31:28 +0000

Franchising Code reforms help level playing field for franchisees admin Fri, 12/10/2021 - 14:31

01 June 2021

The Australian �Թ�� and Family Enterprise Ombudsman Bruce Billson says the significant reforms to the Franchising Code of Conduct announced by the Australian Government today will help level the playing field across the franchising sector.

Mr Billson says the reforms to the Code, which come into effect from 1 July 2021, will go a long way to addressing the power imbalances that often exist between franchisees and franchisors, particularly when disputes arise.

“These reforms are an important step towards getting the balance right for our small and family businesses in the franchising sector,” Mr Billson says.

“In particular, providing greater powers to my office to appoint an independent arbitrator when both parties agree, will help resolve disputes in a cost-effective and timely manner, while crucially protecting business relationships. This supports a no-surprises, collaborative and mutually respectful commercial relationship between franchisees and franchisors.

“Allowing my office to facilitate group mediation when several franchisees are in a similar dispute with the same franchisor, is another critical reform that will help restore confidence in this sector.

“The changes to the Code mean prospective and current franchisees will be better armed with vital information needed to run their business.

“This includes more transparency around the marketing fund, with an annual financial statement which sets out meaningful information regarding expenditure. Greater visibility around rebates and leasing arrangements will be achieved by these reforms.

“The new mandatory Franchise Disclosure Registry, which is scheduled for release in early 2022, is key to providing prospective franchisees with vital information needed prior to entering a binding franchise agreement.

“Over the past six months my office has fielded over 240 calls from franchisees seeking information regarding disputes under the Franchising Code of Conduct.

“This demonstrates just how critically important it is for prospective franchisees to know exactly what they are getting into before signing on the dotted line.

“Ultimately these much-needed reforms to the Franchising Code of Conduct will play an important role in making Australia the best place to start, grow and transform a business.”

Anyone involved in a franchise dispute under the Code is encouraged to contact ASBFEO for assistance on 1300 650 460 or email info@asbfeo.gov.au.

Ombudsman supports outstanding Western Sydney Women

admin — Fri, 10 Dec 2021 02:22:56 +0000

Ombudsman supports outstanding Western Sydney Women admin Fri, 12/10/2021 - 13:22

15 November 2021

The Australian �Թ�� and Family Enterprise Ombudsman, Bruce Billson is proud to support this year’s Outstanding Western Sydney Women Awards to be hosted on 16 November 2021, with a stellar line-up of finalists announced.

“I’m encouraged to see so many exceptional women-owned and women-led businesses recognised at this premier event,” Mr Billson says.

“The pandemic has generated a new era of enterprising women who are trailblazing their own paths to success.

“They’re community leaders, entrepreneurs and tradies – and they deserve this recognition for the brilliant work they do.

“My office is honoured to get behind the awards and the efforts of Western Sydney Women, which aims to help women in the region advance their businesses and career paths and provide a network of support for each other.

“Our �Թ�� Counts report shows more than 35% of Australian small businesses are female-led. In fact, two-thirds of new businesses formed are led by women. That has been rising steadily since the 1990s but certainly more can be done to support women in business.

“Research tell us that the most successful start-ups are created by those who have a network or mentors for support.

“That’s why organisations such as Western Sydney Women are so important in creating a critical mass of female entrepreneurial role models.

“I look forward to celebrating the achievements of these outstanding Western Sydney Women on 16 November.”

Ombudsman congratulates enterprising Western Sydney Women

admin — Fri, 10 Dec 2021 02:18:13 +0000

Ombudsman congratulates enterprising Western Sydney Women admin Fri, 12/10/2021 - 13:18

17 November 2021

The Australian �Թ�� and Family Enterprise Ombudsman Bruce Billson has congratulated the winners of the Western Sydney Women Awards, many of whom are outstanding small and family business owners.

The awards, held virtually last night, recognised the resilience and agility of community leaders, entrepreneurs and professionals who have navigated their own pathways to success throughout the pandemic.

“Congratulations to the winners and finalists – who are all exceptional women,” Mr Billson says.

“It’s inspiring to see these enterprising women recognised for their hard work in fearlessly facing the challenges presented over the past two years.

“Alison Covington – founder and MD of Good360 Australia – was named Western Sydney Woman of the Year and I congratulate Alison for being a leader in her field as well as an innovator and social entrepreneur.

“Like many women-led businesses, Alison is a problem-solver who founded Good360 as a solution to reduce waste by matching excess goods with those who need them most.

“I wish Alison every success at achieving her goal to provide $1 billion worth of brand-new goods to Australians in need by 2025.

“A big shout out to Cassandra Kalpaxis of Kalpaxis Legal who took out the Western Sydney Women �Թ�� Growth Award, who has carved a reputation as a disruptor of the legal industry and founder of the Dispute Resolution Centre Australia.

“My office is a proud partner of these awards and supports the efforts of Western Sydney Women, which aims to help women in the region advance their business and career goals.

“Research shows the most successful small businesses are run by those who have a network of mentors for support. Western Sydney Women offers a critical mass of enterprising female role models, which is especially important at a time when two-thirds of new businesses formed are led by women.

“It was an honour to take part in this year’s Western Sydney Women Awards, celebrating the achievements of these talented women.”