"Franchisors on the Brink Still Recruiting..."

Foodweek Australia contains an article on the need to increase scrutiny on the franchise sector. The article, contributed by Fair Margin, discusses how the Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investment Commission (ASIC) need to increase their scrutiny on the franchise sector.

The article focuses on the current failures of the system and the serious issues that surround franchisors recruiting franchisees in a last ditch effort to stave off company liquidation. In the current worsening economic climate, this article is timely and raises serious issues.

The final paragraph sums it up:

“Directors of businesses that try to sell franchises when they know that their company is going down in flames belong in jail and the ACCC and ASIC should be increasing their scrutiny of the franchise sector to ensure that companies promoting franchise opportunities are and continue to be viable.”

To read the whole article, click here.