A recent parliamentary inquiry into franchising in Australia proposed some substantial changes to how franchising businesses were run in Australia, and how this is reflected in the code of conduct.

Disturbingly, the parliamentary committee found that there was systematic exploitation of some franchisees by a subset of franchisors, and the existing regulatory framework wasn’t adequately protecting them.

In response, the parliamentary committee proposed substantial changes to the Franchising Code of Conduct and to the responsibilities and powers of the ACCC. This included a raft of changes designed to lift the standards of franchise operators and rebuild confidence in franchising in Australia.

Within the cleaning industry, I believe these changes to how the franchise model operates, together with other recent recommendations and advancements, such as subcontractor reporting and single-touch payroll, are another step towards building an even stronger, fairer and sustainable industry.

In effect, these changes will amount to another weapon in our industry’s armoury against illegitimate and unscrupulous operators.

Writing from the BSCAA perspective, I believe that can only be a good thing. We welcome these reforms to the franchising business sector. We see them as a reward for the majority of cleaning and related businesses in Australia that have worked hard to run their businesses legitimately and with integrity. It’s those businesses that will reap the rewards.

Here is the full overview I made on this issue as it relates to the cleaning industry, for InClean magazine.