A new Australian franchise registry has been launched, aimed  to enhance the credibility of the sector, improve franchisor compliance, and provide a resource for people looking to invest in a franchise.

The registry promotes greater transparency in the sector of more than 1100 franchise systems and 70,000 franchised businesses.

It requires franchise brands to provide a current disclosure document and current franchise agreement each year, and to also confirm these documents comply with the Franchising Code of Conduct. Successfully registered franchise systems receive a unique franchise registration number which they can use in all dealings.

More than 200 franchise systems are currently listed on The Franchise Registry.

Franchise Council of Australia (FCA) chairman, Michael Paul, said the registry will highlight credibility and strength in the $131 billion sector.

“It’s unfortunate that allegations of inappropriate franchisor behaviour from a small but vocal minority have the potential to impact the reputation of the wider franchising sector when Australia is the envy of global franchising, with the lowest rates of franchisee disputes in the world,” Paul said.

“We welcome the registry and its ability to generate broad and insightful data on our sector, allowing us to enhance the representation of our members by putting issues into context and proactively promoting our strengths.”

Darryn McAuliffe, CEO of FRANdata Australia, which administers The Franchise Registry, said the registry allowed franchisors to protect and enhance the reputation of their industry.

“An information gap exists between the positive economic performance of franchising and the way people view individual franchise brands, but the publicly accessible registry gives responsible franchisors the opportunity to strengthen the credibility in franchising,” he said.

McAuliffe added the registry would also improve a franchise brand’s finance lending potential.

“Registration evidences a commitment to closing the current information gaps that hinder the identification and assessment of key lending risks, helping both franchisees and franchisors access finance.”