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Australian Franchise Investor Uncertainty

 

Professor Frank ZumboThe Franchise Council of Australia has long prophesised doom and gloom for Australia’s franchising sector should State based franchising laws be introduced.

Professor Frank Zumbo’s SmartCompany opinion piece adds depth and balance supporting the opposing argument in the interests of a healthy franchising sector.

Where the code is not fully complied with franchisors and franchisees will be disadvantaged when non-compliance leads to disputes and loss of confidence. Disputes are disruptive and costly, which is why it’s important that the code is fully complied with at all times.  SmartCompany

While asserting franchisors might shift states the Franchise Council of Australia has attempted to downplay the risk to future capital investment from prospective franchisees where franchising’s reputation has been tarnished by those franchisors who brought on the last 3 years of inquiries and recommendations that are now the basis of the West Australian and South Australian franchising Bills.  

So while certainty is in the eye of the beholder the Abetz and Piccolo Bills have been drafted to provide the franchising sector, especially prospective franchisees, with the certainty that franchisors are fully complying with the code and that franchisors will be behave in accordance with accepted standards of good faith.

Commenting on the Zumbo academic opinion Stephen Giles, partner at law firm Norton Rose and current Chairman and spokesperson for the FCA with 12 years lobbying against any reform, had this to say;

When is Frank Zumbo going to stop flogging a dead horse?

Related Reading at BMM:

ACCC Supports Dedicated Franchise Dispute Resolution

National Franchisee Coalition Pushes WA Bill

West Australia Franchise Hearings Close

Franchise Council Gets Desperate

FCA in West Aus

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