Federal Small Business Minister Bruce Billson recently officially launched Australia’s first franchise registry at a franchise industry event that was held in Melbourne.
The Franchise Registry™ is aimed at promoting greater transparency in the sector which is worth a whopping $131 billion and boasts over 1,100 franchise systems and 70,000 franchised businesses spread out all over the country.
How does The Franchise Registry™ work?
The newly revealed registry requires franchise brands to provide a current Disclosure Document and current Franchise Agreement each and every year and to also confirm that these documents comply with the Franchising Code of Conduct.
Successfully registered franchise systems will receive a unique franchise registration number which they can use (as a stamp of legitimacy) in all their business dealings.
The registry will come in especially handy for people looking to enter franchising in identifying genuine and responsible brands to invest their money in.
It is hoped that this will help to disperse the dark cloud of uncertainty and anxiety that continues to loom over the industry as a result of recent Government inquiries.
Minister Billson welcomed the establishment of the registry and its potential ability to further enhance the credibility of Australian franchising, improve franchisor compliance and provide an excellent resource for people looking to invest in a franchise.
“The 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,” he remarked.
How relevant is The Franchise Registry™ right now?
Franchise Council of Australia (FCA) Chairman Michael Paul said the registry would highlight credibility and strength in the sector.
“It’s unfortunate that allegations of inappropriate franchisor behaviour from a small but vocal minority have the potential to impact the reputation of the wider franchising sector when Australia is the envy of global franchising, with the lowest rates of franchisee disputes in the world,” he noted.
“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 added.
Darryn McAuliffe, CEO of FRANdata Australia, which administers the registry, commented that it will allow 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.”
McAuliffe added that the registry would also help franchises in accessing finance lending.
More than two hundred franchise systems have already listed, don’t get left behind!