Log In / Register | Feb 7, 2012

Franchise Scandal Expose in Australia

Australian Franchisors Accused of Encouraging Franchise Reselling for Higher Short-term Profit

WESTERN AUSTRALIA (Blue MauMau) - A recent news broadcast on a Western Australian popular news program, Tonight Today, has reported an alarming increase in the number of failed franchisees. And on how franchisors can make more money having franchisees fail.

And why do franchisees fail? The program indicates that a standard answer from franchisors is such franchisees did not follow the "system". Or franchisees do not know how to manage their finances. 

But the report shows that it can benefit some franchisors to wait long enough because time is on their side; with a cheap business for resale just around the corner.

Collective Bargaining Down Under

Who benefits, Who Loses Out, and Who Is Really Behind the Mask? 

Australia (Blue MauMau) - Three companies in the Office Group have submitted an application to the Australian Competition & Consumer Commission to engage in collective bargaining. Office Choice, Office National and Office Products Depot want to collectively bargain with wholesale suppliers of office supply equipment. Office Choice and Office National operate office supplies franchises in Australia, while Office Products Depot operates a similar business in New Zealand and has ties with Office Choice and Office National. The Commission has agreed to the request on a draft basis but will seek feedback from interested parties before making a final decision.

So why do they need collective bargaining if they are the one company? Can someone shed some light?