AAAA Welcomes Strengthened Franchise Protections To Boost Industry Growth
The Australian Automotive Aftermarket Association (AAAA) welcomes the Federal Government’s move to strengthen enforcement of the Franchising Code of Conduct and expand protections against unfair contract and trading practices.
Representing both franchisors and franchisees in the independent automotive repair sector, AAAA advocates for policies that support fair competition and sustainable business growth. Franchising is a key model within this sector, providing small business owners access to established branding, supply chains, and operational support. However, power imbalances can create significant challenges for franchisees, limiting their ability to operate effectively.
AAAA CEO Stuart Charity said the reforms—specifically the enforcement of the Franchising Code and protections against Unfair Contract Terms (UCTs) and Unfair Trading Practices (UTPs)—would help address these issues and create a more stable and attractive business environment.
“These reforms are a positive step forward for the franchising sector in the automotive aftermarket industry,” said Mr Charity. “A fair and balanced regulatory framework is essential for fostering confidence, encouraging investment, and ensuring the long-term success of the sector. By providing franchisees with stronger protections and ensuring greater fairness in contractual and trading practices, the Government is creating a system that encourages investment, supports business growth, and ultimately benefits consumers.”
Minister for Small Business Julie Collins has reaffirmed the Government’s commitment to strengthening franchising protections, highlighting that enhanced enforcement by the ACCC will help curb unfair practices while ensuring a level playing field for businesses.
AAAA supports a well-balanced regulatory framework that benefits both franchisors and franchisees by providing certainty, transparency, and a strong foundation for business success.
“We support a regulatory approach that encourages good business practices while maintaining the flexibility that has made franchising such a successful model in our industry,” Mr Charity added. “Fairness in franchising will allow the sector to continue to expand and attract a new generation of business owners.”
The AAAA looks forward to working with the Government and industry stakeholders to ensure these protections are implemented effectively, supporting the continued growth and sustainability of Australia’s independent automotive aftermarket industry.
The AAAA is the only independent national body representing and supporting the entire automotive aftermarket industry. AAAA members are manufacturers, suppliers and retailers of automotive parts and accessories, tools and equipment and providers of service, repair and vehicle modification.