Seeks to strengthen franchising sector.

According to a new press release issued today, the Federal Government will seek to make changes to improve the viability of the franchise sector by the end of the year and save it $8.6 million in red-tape.

The Government has outlined plans to build on a review of the sector by Alan Wein last year and introduce penalties for breaches of the Franchise Code of Conduct to protect small business owners.

Policy direction has been settled for franchising in light of this review and legislative changes have been started to improve the sector for its participants.

"These changes will help cut red-tape by clarifying and streamlining the Code and removing unnecessary provisions," the press release noted.

"This red tape reduction for the Franchising Code is estimated to save businesses $8.6 million annually and will allow more opportunities for resources to be invested back into franchise systems to drive productivity, innovation and jobs."

The proposed changes attempts to strike the right balance between the needs of franchisors and franchisees and the unique nature of the relationship between the two.

The Government is committing to: