1              Overview

For some time the Australian regulators have imposed strict compliance regimes on Franchisors in order to ensure that Franchisees or potential Franchisees work or make decisions within a fair and transparent framework.

Since 1998, the Trade Practices Act 1974 includes an Industry Code dealing with Franchising.

Our program is based on this code, and assesses how the Franchisor has systems in place (based on AS3806: Compliance programs) to comply and continue to comply with the Industry Code.

This is an important tool to protect the brand and its market perception.

AS 3806 is a Standard that provides a framework for compliance. The Standard is structured in 3 sections:

• Structural elements
• Operational elements
• Maintenance elements

Within these, the requirements include (this is not an exhaustive list):

• Structural elements
  • Commitment
  • Compliance policy
  • Resources
  • Continuous improvement
• Operational elements
  • Identification of compliance issues
  • Operating procedures for compliance
  • Implementation
  • Complaints handling systems
  • Record keeping
  • Identification and rectification
  • Systeming and recurring problems
  • Reporting
  • Management supervision
• Maintenance elements
  • Education and training
  • Visibility and communication
  • Monitoring and assessment
  • Review
  • Liaison
  • Accountability

Franchisors are expected to have systems in place to address these requirements of the standard, and records to demonstrate continued compliance.

2              In Simple Terms

The aim of this program is to improve the level of confidence Franchisees have or will have in the set up of the Franchise.  It is also aimed at ensuring due processes have and are being followed and due diligence is in place that can be used as a defence in the case of litigation, which overall enhances the level of confidence in the operation.

This program will help prevent the damaging of the Franchisor’s brand name and reputation that can be caused.

The on-going nature of the Certification cycle makes it such that regular post certification audits will identify and detect variations, and ensure these are reported and addressed in a timely manner.

3              Specific Program Conditions

3.1         Provision of Legal Advice

The Franchisor should seek and have records of regular legal advice from a reputable legal professional in the Franchising field with regards to:

• The Franchising Agreement
• The disclosure documents
• Contract documents (including supply contracts, employment or subcontractor contracts as applicable)

3.2         Dissemination of information to Franchisees

The Franchisor should have documented procedures in place and records to support their implementation to regularly advise, share important information, update, and seek feedback and input to/from the Franchisees.

3.3         Scope of Certification and Certificate Holder

The scope of certification must present and define the type of franchise operation, and the Certificate Holder must be the organisation acting as the Franchisor (the Franchise trading name-s- may also be added).

4              What Documents/Records Are Needed To Understand This Program

In order to understand our Program, you should also access and be aware of the following documents:

·         G-00: Welcome Pack

·         MSP-00: Introduction to our Management Systems

·         MSP-01: Nomenclature and Definitions

·         MSP-24 Appeals

How to Apply