FCA welcomes new mediation arrangements

| December 18, 2018

The Franchise Council of Australia has welcomed the Federal Government’s appointment of a new adviser to resolve disputes under the Franchising Code of Conduct.

“Access to effective, simple and low-cost dispute resolution is important for both franchisors and franchisees,” said FCA CEO Mary Aldred.

“The Federal Small Business and Family Ombudsman is held in high regard by franchisees and franchisors for an engaged and accessible approach and has a strong and contemporary understanding of sector issues. That’s why it makes sense for the SBFO office to also be able to take on a stronger mediation role for our sector.”

“The FCA had advocated for this change several months ago, and we welcome the Federal Government’s willingness to listen and respond.”

The Franchising Code of Conduct is a mandatory code that applies to all businesses involved in a franchise agreement. The Code also describes the behaviours expected of franchisees and franchisors and includes a process for managing disputes.

“The code, prescribed under the Competition and Consumer Act 2010, helps participants understand their rights and responsibilities and provide effective avenues for dispute resolution,” said Ms Aldred.