Reaction and Impacts Survey on the Australian Franchise Sector following the Fair Work Amendment (Protecting Vulnerable Workers) Bill 2017.

1. How would you rate the level of awareness of your franchise system in relation to this amendment?
  *This question is required.

• Not previously aware
• Somewhat aware
• High level of awareness and related implications

2. How would you rate your level of concern in relation to these changes? *This question is required.

• Not concerned
• Low level of concern
• Somewhat concerned
• Concerned
• Extremely concerned

3. How would you describe your readiness to deal with this change? *This question is required.

• We have not given any consideration yet as to what what may need to be done.
• We are investigating what needs to be done.
• We have an action plan in place and are working through it.
• We believe we fully understand the implications and are ready.

4. What types of support do you provide franchisees in relation to employing staff and meeting minimum wages and conditions? (Please tick all relevant boxes)
  *This question is required.

• Information in operations manual
• Ongoing training and updates
• Advice about relevant pay rates
• Provision of HR/IR policies, procedures or templates
• Recruitment of staff
• Facilitating access to external HR/IR advice and support
• Internal checks or audits
• Centralised payroll services
• Other support
• Not applicable (no support provided)

5. In your franchise network which statement most accurately describes how workplace issues are currently addressed: *This question is required.

• Franchisees take full responsibility for all workplace issues.
• We provide some training and general guidance and information, but franchisees manage workplace issues.
• We provide strong guidance to franchisees and actively police compliance.
• We take joint responsibility with franchisees.
• We are extensively involved, including providing payroll and other workplace services for franchisees.
• We manage all workplace issues.

6. Are you aware that the Franchise Council of Australia has a free HR help desk in place for members and their franchisees? *This question is required.

• Yes
• No

7. Are you in favor of amending the Franchising Code of Conduct to allow a franchisor to immediately terminate a franchise agreement where there are reasonable grounds for believing that serious contraventions of the Fair Work Act have occurred? *This question is required.

• Yes, in all cases.
• Yes, where the breach is intentional or reckless.
• Yes, where the franchisor purchases the business of the franchisee for fair market value.
• No, unless the breach has not been remedied after 30 days’ notice or is repeated.
• No, not in any circumstances.
• Don’t know / no opinion.

8. Which of the following activities would you expect to undertake if the legislation is introduced?  (Please tick all planned activities) *This question is required.

• Independent Assessment of whether the company is caught by the legislation
• A risk assessment and exposure to FWA obligations, including the identification of risk indicators, identification of high risk exposures assessment of previous and current complaints, interviews with field managers
• Risk framework including inherent risk assessment, identification of risk control or mitigation plans, assessment of residual risk and control testing schedules
• Risk based assessment and audit program
• Compliance rectification plans including assessment of training program, field support, franchisee profitability, communications processes to franchisee network, and any network escalation processes
• Implementation of an ongoing compliance program to detect and address franchisee work place non-compliance.
• None of the above
• Not sure

9. We would expect to include the following components in any implemented compliance program (Please tick all expected components)
 

• Enhanced initial and ongoing training
• Increased communications re work place compliance
• Specific work place compliance field support programs
• Annual certification by franchisees
• External certification of high risk franchisees
• Risk based audit and inspection program
• Increased due diligence as part of the franchisee recruitment program
• All of the above

10. If changes are introduced to make franchisors directly or jointly liable for the workplace relations breaches by 
franchisees, which of the following impacts best describe the impact on your business: - *This question is required.

• Little or no material cost or process impact
• Minor additional cost and changes to business processes
• Substantial additional cost and changes to business processes
• Fundamental review of whether we would continue with a franchise model
• Cessation of involvement in franchising

11. What do you estimate the total dollar cost of these actions to be over the first twelve months? *This question is required.

• $0 - $5,000
• $5,001 - $20,000
• $20,001 - $50,000
• $50,001 - $100,000
• $100,001 - $250,000
• $250,000 plus

12. If franchising is singled out in legislation such that franchisors will be potentially liable for workplace law breaches by franchisees, will you re-consider using franchising as a business method? *This question is required.

• Definitely not
• Unlikely
• Maybe
• Probably
• Definitely

13. If you are potentially liable for workplace relations breaches by your franchisees, to what extent will you need to review your current processes in relation to workplace law compliance by your franchisees?  *This question is required.

• Not at all
• A little
• Somewhat
• Significantly
• Unsure

14. Which statement best describes your visibility and knowledge of workplace law compliance by franchisees in your network?
 
  *This question is required.

• We control compliance and take direct responsibility for compliance in the franchisee’s workplace.
• We actively monitor compliance and are confident that compliance levels are very high.
• We provide significant training, information and support and have no reason to believe that we have any material compliance issues.
• We do not get involved in workplace issues as that is the franchisee’s responsibility. However, we require full compliance and will act swiftly in the event of a breach.
• We have minimal visibility of compliance.
• We do not get involved in the franchisee’s workplace.

15. As a result of the proposed amendments we intend to:
  *This question is required.

• Suspend or cancel (where possible) all previously planned new openings
• Open less new franchised outlets
• Open more company outlets
• Maintain our opening program for franchised and company units

24. Does your franchise system have an "in-house" legal function? 

• Yes
• No

25. Does your franchise system have an "in-house" Human Resource function? *This question is required.

• Yes
• No

28. Would you consider being involved in further representation or focus groups around this issue? (Optional response)

• Yes
• No