FCA Franchise Fears

The FCA is nervous about proposed changes to consumer laws that would deem franchisees as consumers with new and previously denied rights to redress.

"The FCA says there is a threat the legislation could inadvertently trap franchisees, or at least cause confusion and increase legal costs.  Laying a consumer code over the top of the Franchising Code of Conduct  is a recipe for confusion and a boost in business for franchise lawyers."

Once again we see the FCA attempting to protect franchisees from the possibility of being trapped while standing up to protect franchisee contracts.  Sadly this article and the FCA miss the point that most franchisees in conflict will find themselves without access to justice with or without this or any other currently proposed law reform.  Their fears are unfounded.  

BRW 30March 2009 - Jane Lindhe - ‘Franchise Fears'.