ACCC Chairman: Franchise Churning Does Exist
Australia's ACCC: "Yes, we have discovered that it (churning) does exist in some cases and we will take steps..."
SYDNEY, Australia (Blue MauMau) - Whilst being interviewed by radio 2UE about franchising issues and in particular churning, Mr Graeme Samuel, the Chairman of the Australian Competition and Consumer Commission (ACCC) stated “Yes, we have discovered that it does exist in some cases and we will take steps if we can to deal with that.”
The host, Glenn Wheeler, then stated “Interestingly though that the FCA (Franchise Council of Australia) says that it doesn’t exist”. To which Mr Samuel replied “I don’t think we can deny, I don’t think anyone can realistically deny that there are some rogue operators out there in the franchising world. It would be silly, it would be putting your head in the sand to suggest there are no rogue operators, of course there are.”
Seven weeks ago 2UE ran what was initially planned to be a one off segment on franchising. As a result of this segment 2UE was inundated with responses alleging franchisor opportunism and misconduct. Of several high profile franchisors mentioned, the most prominent is Bakers Delight, which trades in Canada and the USA as COBS bread.
Overwhelmed by the plight of both former and current franchisees Glenn Wheeler’s afternoon show now dedicates an hour every Saturday from 1pm to discuss franchising issues. This may be listened to live on MyTalk. Previous shows maybe listened to on BakersDelightLies.com.
So far guests on this show include both former and current franchisees, the CFO of Bakers Delight, the Chairman of the ACCC, the Federal Minister for Small Business, representatives of the National Federation of Independent Businesses, the Franchisees Association of Australia and the FCA, including its CEO, Chairman and Vice President of the FCA’s New South Wales chapter.
The FCA, the self appointed peak industry body that claims to represent both the franchisor and the franchisee, continues to oppose any notion that churning or franchisor misconduct exists because “it is against the law”. Interestingly, last Saturday, the Vice President of the FCA’s NSW chapter seemingly reluctantly admitted to Glenn Wheeler that the FCA receives its funding from franchisors.
In a follow up interview on the television programme, Today Tonight, Mr Samuel went on to say that the ACCC will not only pursue franchisors guilty of churning through the civil courts but will also seek criminal convictions.
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