The Australian Associated Press reports that franchise owners may have to give more warnings to prospective franchisees, after the government announced a review of the franchising code of conduct.
Small Business Minister Fran Bailey said the government would review the disclosures section of the code, which relates to the information franchisers must disclose to prospective franchisees.
She said there had been concerns raised in recent months about the adequacy of the disclosure provisions.
“Most people in the franchising sector do the right thing, but given the level of concern, I have decided to review the disclosures section of the code,” she said.