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Log In / Register | May 25, 2018

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Ray J Borradale's picture

Supply Chain and Advertising Funds

Compliance obligations and the majority of struggling franchisees unable to pay for or justify the cost of drawn out litigation means that when the supply chain obligations turn abusive and/or the advertising fund is raped, franchisees have no where to go. Mediation in Australia is mostly an opportunity to pressure and intimidate franchisees where outcomes rarely satisfy franchisees. Mediators rely on the FCA for income. 

The ACCC with a very skinny budget have strict requirements to be met before they can justify the cost of pursuing a franchisor and unfortunatley, once again, business operators have lost faith. Even when the ACCC do get a finding against a franchisor, penalties hardly come close to the damage they cause and franchisees typically get nothing [exception Allphones]