IBISWorld, Franchising in Australia, Industry Report X0002 (July 2020).

Franchise Council of Australia's submission to the PJC, page 5.

Franchise Law Review, page 101, 2018 Law Business Research Ltd .

Fairness in Franchising report, Appendix 3, pages 319-320.

See Media Release, Building a fair , effective and accountable franchising network , 21 June 2019, https://ministers.employment.gov.au/cash/building-fair-effective-and-accountable-franchising-network.

See discussion on the limitations of franchising data below

See example cited at page 65 of the PJC Fairness in Franchising report, provided by 7-Eleven stores.

See, for example, ACCC's Disclosure practices in food franchising report. This report found that 40 per cent of prospective franchisees did not seek any independent professional advice before entering a franchise agreement.

The ACCC report Small Business in Focus , showed that for the 12 months to 31 December 2019, the ACCC received 465 reports relating to franchising. This was an increase from the previous 12 month period in which 405 reports were received. More detailed information on these complaints, such as the breakdown of issues by industry sector, is not reported. See discussion on limitations to franchising data below.

ACCC Disclosure practices in food franchising , August 2019 report. Compliance in this sector was targeted because '[t]he ACCC receives more franchising code related reports from caf é , restaurant and take-away food franchisees than any other sector' (Media Release, ACCC to focus on franchisors ; disclosure in the food services sector, 7 February 2019).

Recent ACCC action has been taken against Bob Jane Corporation Pty Ltd, Geowash, Ultra Tune and Jump Swim Schools. Details on www.accc.gov.au.

Department of Industry, Science, Energy and Resources, Regulation Impact Statement : Franchise relationships between car manufacturers and new car dealers , February 2020.

https://www.accc.gov.au/about-us/australian-competition-consumer-commission/compliance-enforcement-policy-priorities#2020-priorities

The maximum penalty for breach of an industry code provision is 300 penalty units (currently $66,600). These amendments also allowed for the ACCC to issue infringement notices where it has reasonable grounds to believe a person (or body corporate) has contravened a civil penalty provision of an industry code. Infringement notice amounts are 50 penalty units (currently $11,100) for a body corporate and 10 penalty units (currently $2,220) in any other case.

ACCC Disclosure practices in food franchising , August 2019 report.

Submission 184 to the PJC inquiry.

Report of the Migrant Workers' Taskforce , https://www.ag.gov.au/sites/default/files/2020-03/mwt_final_report.pdf, p. 37

Submission 32 to the PJC inquiry.

Submission 185 to the PJC inquiry.

Submission 27 to the PCJ inquiry

This discussion considers costs and benefits associated with developing an online educational resource for the franchising sector; amending the Information Statement to emphasise the importance of prospective franchisees understanding Franchising Code requirements and to warn prospective franchisees of the need to obtain advice about restraints of trade before entering the agreement; raising awareness of the use of 'no agent' and 'entire agreement' clauses; providing education on best practice financial statements; providing education on distribution of unused marketing funds; improving awareness of wastage and shrinkage payments.

This figure is based on DISER's RIS Franchise relationships between car manufacturers and new car dealer , released February 2020.

According to the Australian Bureau of Statistics Publication 6306.0 Employee Earning and Hours Australia (May 2018), the average weekly cash earnings of an owner manager of an incorporated enterprise is $1,486. Based on owners working a 38 hour week, this equates to approximately $39 per hour. This publication was released 22 January 2019 and is available from the Australian Bureau of Statistics website.

According to the Australian Bureau of Statistics Publication 6306.0 Employee Earning and Hours Australia (May 2018), the average weekly cash earnings of a non-managerial employee is $ 1,227.30. Based on employees working a 38 hour week, this equates to approximately $32 per hour. This publication was released 22 January 2019 and is available from the Australian Bureau of Statistics website.

According to the Australian Bureau of Statistics Publication 6306.0 Employee Earning and Hours Australia (May 2018), the average weekly cash earnings of a managerial employee is $2,424.50. Based on employees working a 38 hour week, this equates to approximately $64 per hour. This publication was released 22 January 2019 and is available from the Australian Bureau of Statistics website.

Updated using data from IBISWorld September 2019 report and IBISWorld July 2020 report, based on calculations made in the 2014 franchising RIS which stated that For 2002-2012, there was an average of 1,890 new franchisees per year. Each franchisor takes on an average of 1.6 new franchisees per year.

Research by Griffith University, presented in the Franchising Australia 2012 report (page 85). An electronic copy of the report is available from the Griffith University website.

2 hours of the franchisors time annually (the fact sheet will be updated once a year, in line with the obligation to update franchise disclosure documents annually) x $39 per hour x 1,240 franchisors x 10 years = $967,200. This equates to an average annual regulatory cost of $96,720. Note this figure is subject to change following stakeholder consultation on the final form of the Key Disclosure Information Fact Sheet, which will decide the final design of the Fact Sheet and therefore the time taken by franchisors to develop this documentation.

See full business costs of this measure below.

Note that approximately 60 per cent of franchise systems have a marketing fund. Thus the burden will be 2 hours annually x $39 per hour x (60% x 397 master franchisors) x 10 years = $185,796. This equates to an average annual regulatory cost of $18,580.

See discussion on transitional legal costs below.

Approximately $3,919,340

FranchiseED, 2018, Managing Franchise Agreements : Transfers and Renewals , accessed online at https://www.franchise-ed.org.au/franchisor/managing-franchise-agreements-transfers-and-renewals/

25% of 1,240