International Law

Baker's Delight Franchisee Forces National Investigation

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In Australia, there is a new impetus to review the franchise disclosure laws - this time from the agency which reviews securities.

Deanne de Leeuw, a former franchisee of Bakers Delight has succeeded in getting the franchise relationship looked at by Australia's Joint Standing Committee on Corporations and Financial Services.

This is an important shift in focus, moving the focus of franchise relations from a pre-purchase disclosure regime to a continuous disclosure regime.

A BATTLE between Bakers Delight and a former franchisee has resulted in a national inquiry into franchising.

The inquiry will be conducted by the Parliamentary Joint Standing Committee on Corporations and Financial Services.

Deanne de Leeuw from Nowra owned three Bakers Delight franchises in the area and after uncovering a major staff underpayment issue ended up in a lengthy, expensive and emotionally draining battle to have the system changed to protect franchisees.

Ms de Leeuw has been calling for a federal inquiry into franchising since last year.

Two State inquiries have since been completed, but the Federal Government, until now had shown no inclination to address their recommendations.

The reason why this is very important is that typically securities legislation involves a requirement of continuous disclosure -not just pre purchase disclosure.

This is a very important development in franchise regulation which bears watching.

Full post as published by Misleading Advertising Law on July 24, 2008 (boomark / email).