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“Around 2005 a number of ex franchisees complained to the ACCC about various shonky practices that the Young’s were doing including selling used product as new, misrepresenting the franchises/business model in order to sell them and enticing sales people to join the company with the promise of huge salaries (which never happened),”The report goes on to detail some of the allegations, including competing with franchisees for sales where the franchisor offered products to consumers at less than the price franchisees were authorised to sell at, earnings misrepresentations, profit guarantees and sundry unconcsionable conduct claims. The ACCC's response was, surprise surprise, to advise mediation and not much else. The franchisee, who wishes to remain anonymous, comments that
“If the ACCC had done their job then the Young’s would have been stopped and the company’s countless victims would not have lost huge amounts of money,”
Yet again the ACCC are asleep at the regulatory wheel only this time it's not just franchisees who have suffered from the ACCC's inability to do anything except shuffle the paperwork and pass the buck.
Full article available here