Australian Franchisors Prefer Unfair Contract Laws
"Franchisors need to be flexible. You often need to change the business system, so you will have provisions in the contract that say ‘we need to change this system as often as we need to.' You need that to protect the flexibility of the system." - SmartCompany
HWL Ebsworth acquired the law firm of Abbott Tout. Abbott Tout had a bad habit of representing franchisees until they ran out of money. Broken franchisees had a bad habit of not being able to pay.
Obviously HWL want a slice of the franchisor pie in Australia so now there will be some competition for Deacons Lawyers. Franchisees should heed this warning - there may be renewed vigour and examples of rough and tough lawyering to secure some of the market.
Smart Company got this one wrong; the franchising industry does want the Government's proposed legislation on unfair contracts. One thousand franchisors don't want it and in excess of 65,000 franchisees do want reform. Think: why did they propose this legislation? How can it not apply to franchising?
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About Ray Borradale
Public Profile
Forty years experience in Small Business and twenty-four years in franchising operations as a franchisee and employed by three franchisors, mostly in operations.
I have dedicated ten years and close to 15,000 hours in the pursuit of quality franchising and exposing franchisor abuse of franchisees while advocating for the introduction of franchise relationship Law and the levelling of the dispute processes between bigger business and small business.
Contact: ozfranchising@hotmail.com
Area of Interest
Franchise Operations
