International Law

Australian Franchising Code goes after Bullies

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The Australian Parilament heard but did not act upon some suggestions about how to regulate franchise relations.

"Bullies and rogues in the franchising industry have been targeted by changes in the Franchising Code of Conduct this week, but critics brand some of the recommendations as ''superficial.''

The concept of good faith between the parties, tougher penalties for breaches, and improved dispute resolution and disclosure requirements are some of the key changes in the latest report on the Franchising Code of Conduct, tabled in Parliament this week.

Labor MP Bernie Ripoll, who chaired the parliamentary inquiry, told MySmallBusiness the 'broad-based' nature of the findings sought to ''put bullies on notice'' and sharpen up the mandatory aspects of the code.

''Whatever we do has to strike some balance between franchisors and franchisees: those who are doing the right thing should continue to go about their business, but there are some rogues who give the industry a bad name and I know we feel that the sector should go after them,'' he said."

Interesting, but I doubt that any real work will be done until the legislation acts to set the procedures which will allow a franchise association to be recognized as a the legitimate bargaining agent for the franchisees.

Full post as published by Misleading Advertising Law on December 03, 2008 (boomark / email).