Federal government unveils franchise reforms: Here are eight changes SMEs need to know

Reforms designed to better balance the rights of franchisees and franchisors in the $154 billion franchising industry will come into effect next month.

The amendments to the Franchising Code of Conduct, the mandatory code that regulates conduct between franchising parties, feature eight major changes, including an improved dispute resolution process.

Small business minister Stuart Robert announced the changes on Tuesday, with many to come into effect on July 1, 2021.

However, amendments related to dispute resolution will apply to disputes from June 2, and amendments that require franchisors to change disclosure documents will apply from November 1, 2021. 

The reforms come after a string of high-profile franchising scandals, and an extensive period of consultation on proposed changes to the code, including consultation on exposure draft legislation in late 2020.