The Business School BULAW2611 Organisations Law Semester 1 2013 Assignment - Essay Assessment information The information below is provided in conjunction with that provided in the BULAW2611 Course...

1 answer below »
The Business School
BULAW2611 Organisations Law
Semester 1 2013
Assignment - Essay
Assessment information
The information below is provided in conjunction with that provided in the BULAW2611 Course Description. It is recommended that you familiarise yourself with the details in both documents.
Weighting: 30%
Word limit or equivalent: 2,500 words
Referencing: You are required to follow the APA style of referencing for this essay.
Resources: It is recommended that you independently seek out resources, in particular academic, peer-reviewed journal articles. You will be rewarded for using journal articles in your essay. At this stage of your university studies, it is expected that an essay of this length will use at least 10-15 journal articles to support the arguments / points made. Other resources, such as textbooks and electronic documents obtained from authoritative (eg, government) websites, can also be used, but only to a limited extent.
Assessment details:
You are required to read the media release about franchising below and determine what are the key points of this document.
Using these key points, you are to write an essay that demonstrates your depth of understanding of the relevant legal instruments and their practical applications to business owners.
Legal instruments that require examination in your essay include the Franchising Code of Conduct and the Competition and Consumer Act 2010 (Cth).
Key provisions of these and others, as appropriate, should be discussed in conjunction with the practicalities of operating a franchise in Australia.
It would be useful when considering the operation of the law to analyse actual examples of franchises in Australia.
MEDIA RELEASE
EXPERT TO REVIEW THE FRANCHISING CODE OF CONDUCT
Source: States News Service. (Jan. 4, 2013):
CANBERRA, Australia -- The following information was released by the office of the Minister for Innovation, Industry, Science and Research of Australia:
Minister for Small Business, Brendan O'Connor, today announced a review into the Franchising Code of Conduct, calling for submissions from the franchising sector.
Mr O'Connor said the primary purpose of the review was to verify, after a reasonable implementation period, that the amendments to the Franchising Code of Conduct made in 2008 and 2010 were working as intended.
"The franchising sector is an important part of Australia's economy," Mr O'Connor said.
"It comprises around 73 000 franchises, with an annual turnover of more than $130 billion and employs more than 400,000 people."
Mr O'Connor said the review would consider issues including:
? questions of good faith in franchising,
? the rights of franchisees at the end of their franchise agreements including recognition for any contribution they have made to building the franchise, and
? the operation of the Competition and Consumer Act 2010 (Cth) with respect to enforcing the code.
"We undertook to review the amendments to the Franchising Code in 2013, when the last changes were announced in 2010," Mr O'Connor said.
"Participation and evidence from the franchising sector would be welcomed and a discussion paper has been drafted to assist people wanting to make submissions to the review."
Mr Alan Wein, an experienced franchise operator and small business adviser, has been appointed to conduct the review.
Mr O'Connor congratulated Mr Wein on the appointment.
"Mr Wein brings a wide variety of talent, skills and experience through an impressive history of personal achievement," Mr O'Connor said.
"He has a thorough understanding of the small business sector from his involvement with the Victorian Small Business Advisory Council and has extensive experience in mediation and commercial law, making him ideal to conduct this review."
Further information about the review, including details of the 2008 and 2010 amendments to the Code, the discussion paper and the terms of reference is available from www.innovation.gov.au/SmallBusiness/CodesOfConduct
005_orefazo-kungvtcc.pdf
Answered Same DayDec 22, 2021

Answer To: The Business School BULAW2611 Organisations Law Semester 1 2013 Assignment - Essay Assessment...

Robert answered on Dec 22 2021
131 Votes
Before starting with recent changes and up gradation of franchise business law .I would like to
highlight few facts about franchise business and its presence in Australian Economy that "It
comprises around 73 000 franchises, with an yearly turnover of more than $130 billion and
employs greater than 400,000 citizens."
Talking about the franchisors in Australia there are more than 1100 as stats of 2012, and it shows
a growth of 10%-12% as compare to the 2010 after the crisis of 2008. There was an economic
turn down in Australia between 2008 and 2010 known as the Global Financial crisis (GFC) and
later it started picking up after 2010. The respond after the crisis was such that there were more
than 70000 units operating in Australia as business format franchises which showed as a
recovery of 5%. The growth was mainly of the non-retail industries and more than 400000
people were working in the franchising industry. It estimated or resulted about $130 billion as
sale proceeds. Australia had developed a lot in concern to the franchise system. Online sale was
one of the key factors and about 40% of the franchise system was involved in it, as people were
more computers savvy and preferred more of online purchase rather than going for purchase on
foot. The franchise system grew about 160 in number from 2010 to 2012. In understanding the
segregation the markets it was seen that more than one fourth of the markets was involved in
non-food retail and around 20% in the food business. 15% of the markets included service
industry and administration like tour agencies, domestic cleaning, gardening and others. Rest
10% of the franchisors came under the category of ‘other services’ like personal services,
automotive etc. The rest of the industries were of smaller proportions of franchising. The
franchise industry had a great positive respond in improving the economic conditions of the
country and entrepreneurs have made their way on opportunities in several growths of market.
Attractiveness to the franchise system was on a range of retail offerings, constructions, real estate
and much more. Offices of big corporate started coming up by the franchisors and the main and
posh areas were considered for the same.
Discussing the rights of franchisees of their agreements:
It has been 21 years the franchisors have been operating for median. However, the median of 13
years of franchising experience is consistent with sector trends and with the 2010 survey which
reflected 11 years of franchising experience. Hence, whilst the sector continues to introduce new
franchise systems, the majority are well established and experienced in franchising. Franchisors
piloted their operations for a median of four years prior to commencing franchising. However,
the strategy of some 16 percent of franchisors was to begin franchising immediately and a further
18 percent did so within the first year of operation, supporting the belief that franchising was
strategically chosen as a business model from the birth. Patterns of growth were steady across the
retail and non-retail sectors.
The franchise industry had been overseen by the Franchising code of conduct in Australia under
the completion and consumer act 2010. In the year 2010 in July and in January 2011 the Federal
Government made amendments and reformed the franchise regulation in the country. There is a
specific legislation to regulate the franchise sector in Australia so that it is taken care of on
immediate basis as and when required. The purpose of the same is to regulate the participants in
the industry in direction to the other.
It basically takes care of three key areas of franchising:
1. The speech act for the franchisors
2. The agreement requirements for a franchise
3. Process to rule on the disputes if any between the franchisor and the franchisees
Pre-registration of the franchisors with any authorities before franchising was taken care of under
the code but shall be in operation in the code of all times. Breaching the code of law was
considered to be a breach of Competition and Consumer Act and was a punishable under the
rules and the remedies of the same were under the Act.
In...
SOLUTION.PDF
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here
Have files?