Franchisees have complained about being squeezed on ingredients and being encouraged into restructuring.
- Emeritus Professor, Business School, UNSW
There are some hallmark problems within franchising in Australia and internationally and not all are within the franchisor’s or franchisees’ control to fix.
The law assumes franchisees do their financial and legal homework when it comes to signing up to a chain, but research shows franchisees are often overconfident and ignorant of the risks.
Potential franchisees need to know what they are committing to before they decide to buy a franchise.
Given franchisors often hold all the legal, financial and psychological power, it’s little wonder franchisees get burnt.
The government is moving to introduce a new Franchising Code of Conduct as part of wide ranging reforms to how franchising arrangements are regulated, claiming it will be fairer for small operators and…
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