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State Parliament concluded hearings into the West Australian Franchising Bill and wouldn’t you know it; the Franchise Council of Australia is whining again. Its executive director, Steve Wright, just doesn’t understand what all the fuss is about.
The media almost daily carry reports of improper conduct by franchisors. On 10 August, WAtoday carried the story of Mr Coombes of Morley who had an AutoMasters franchise. The Australian Competition and Consumer Commission refused to protect him. He took the matter to court and won the case, but he went bankrupt because the case cost him $400 000 in legal fees.
The West Australian, on the same day, carried a story about a Wendy’s franchisee in New South Wales who was locked out of her franchise because she was $7 000 behind in her payments. Tragically, that franchisee died two days later—no doubt partly due to the stress. The member for Wanneroo tells me that he was recently approached by a constituent who had been ripped off by an unscrupulous franchise.
In 2007, the member for Peel, now Warnbro, raised a grievance to the then Labor Premier regarding unfair dealings of a franchisor to a Kentucky Fried Chicken franchisee at the end of the franchise term. Peter Abetz MP
Sadly the FCA continue its attempts to sell the Franchise Bill as being all about one franchisee and then top it off with dabs of inaccuracy, a thick smear of concern and another less than subtle shot at the trustworthiness of the Committee.
Mr Cowin claimed that he was a victim of churn by the franchisor of the KFC outlets, Yum! Brands, and that many franchisees were being ‘ripped off’ in this manner. FCA
Obviously the Franchise Council of Australia has been too busy pouting to review the recommendations of 3 franchising inquiries since 2008 from which virtually all of the West Australian Franchising Bill comes from.
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