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MELBOURNE Australia—The Franchise Council of Australia has given Australian franchising a clean bill of health on the back of a massive six systems that have reported healthy growth. The executive director Steve Wright admits to the obvious; franchising is not a panacea for poor or dishonest business operators and in a typical B grade retch expresses genuine concern for those that fail.
‘There is rarely a bright side to observing a business on the rocks - and people losing money or their livelihoods.'
Wright reminds readers, media and politicians that the Franchise Code of Conduct is the magic enema for all franchising scams.
‘The disclosure process contained in the Franchising Code of Conduct, which requires financial statements and a director's statement of solvency to be attached to the disclosure document each year, also gives franchisees an early warning of potential problems. And if the disclosure document has not been updated or is deficient, the Trade Practices Act provides potential legal remedies against the directors and individuals knowingly involved in any breach.'
It is anticipated that FCA will continue to respond to the growing frustration aimed directly at FCA's Small Business Minister; Craig Emerson MP [Rankin]. His total avoidance of the serious issues exposed by his own federal government funded Franchising Inquiry and recommendations documented in Parliament's ‘Hook, Line and Sinker' appears to have left FCA a little poorer while Australia's franchising community remains fuming at the Kevin Rudd government's incompetence.
Note: Wright has never authored an article at SmartCompany.com.au previously. Callers suggest that this was paid-for lobbying and that no SC journalist would be prepared to put their name to ‘shameful', ‘crap' and the unprintable.