Ep127 Understanding the “Reasonable Return” Provisions in Australian Franchising with Stephen Giles

Stephen Giles – Leading Australia Through a New Era of Franchise Regulation   Stephen Giles is one of Australia’s most respected voices in franchising — a senior partner at Norton Rose Fulbright and a long-time industry leader who has shaped franchising policy for more than two decades.   Having served 27 years on the Franchise Council of Australia board, Stephen has drafted countless submissions to government, worked closely with regulatory bodies, and guided franchisors through major legislative shifts.   In this episode, Stephen unpacks the latest and most significant change to the Franchising Code — the requirement for franchisors to ensure franchisees have a reasonable opportunity for a return on investment. He explains the intention behind the law, how it may reshape the franchise market, and why responsible business modelling and due diligence matter more than ever.   Stephen also discusses broader challenges facing the sector: rising compliance costs, media misconceptions, regulatory overreach, and the growing influence of auto dealer politics. Drawing from recent discussions in the United States, he highlights the stark contrast between Australia’s heavy regulatory environment and more balanced global approaches.   0:00 Introduction 0:59 The Franchising Code update: ROI obligations and what it means for franchise system 4:35 Prospective buyers now have easier access to online information and feedback from existing franchisees  6:39 Why assumptions about “big brands” can mislead buyers 9:02  Why franchising often ends up in the media spotlight for the wrong reasons 12:28 Rising compliance costs forcing franchisors to choose legal fees over support 13:33 ROI provisions expected to evolve through court cases, not industry panic 16:26 The push to separate auto from franchising regulations — and the political roadblocks 17:41 What U.S. franchising reveals about regulation and shared responsibility 21:20 Wrap up   Podcast Produced by:  www.franchisebusinesshub.com.au   Listen or Watch on;   Spotify: https://tinyurl.com/482a2yfd Apple Podcasts: https://tinyurl.com/3p4w3vza Amazon Music: https://tinyurl.com/2s3acjh YouTube: https://youtu.be/wdBqnj0JTes