Australia’s first franchise registry has been launched with the aim of enhancing the credibility of Australian franchising, improving franchisor compliance and providing a resource for anyone looking to invest in a franchise.
Launched yesterday by Minister for Small Business Bruce Billson, the Franchise Registry promotes greater transparency in the sector, which boasts over 1,100 franchise systems and 70,000 franchised businesses. It requires franchise brands to provide a current Disclosure Document and current Franchise Agreement each year and to also confirm that these documents comply with the Franchising Code of Conduct. Successfully registered franchise systems receive a unique franchise registration number, to be used in all dealings.
The registry will provide people looking to enter franchising, and their advisors, with a base level of assurance in identifying genuine and responsible brands, helping disperse the cloud of uncertainty that persists over the industry as a result of recent Government inquiries. Officially launching The Franchise Registry, Billson said the initiative would aid decision-making in the franchising sector.
“Federal Government has long had an appetite for better indicators of stability in franchising and we welcome any initiative that can generate more meaningful data that we can use to enhance our support of the sector,” Billson said.
Franchise Council of Australia (FCA) Chairman Michael Paul added that the registry would highlight credibility and strength in the $131 billion sector.
“We welcome the registry and its ability to generate broad and insightful data on our sector, allowing us to enhance the representation of our members by putting issues into context and proactively promoting our strengths,” he said.
Darryn McAuliffe, CEO of FRANdata Australia, which administers The Franchise Registry, said the registry allowed franchisors to protect and enhance the reputation of their industry.
“An information gap exists between the positive economic performance of franchising and the way people view individual franchise brands, but the publicly accessible registry gives responsible franchisors the opportunity to strengthen the credibility in franchising,” he said. “Registration evidences a commitment to closing the current information gaps that hinder the identification and assessment of key lending risks, helping both franchisees and franchisors access finance.”
More than 200 franchise systems are already listed on The Franchise Registry, which can be found at www.thefranchiseregistry.com.au.
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