The Franchisee Association of Australia (FAA) wants the Australia Securities and Investment Commission (ASIC) to take a greater role in scrutinising franchise operations. The association says ASIC should cover investment in a franchise as they cover investment in other businesses.
Lobby group spokesperson David Beddall, a former small business minister, pointed out disparities between clauses in some franchise agreements and the Franchising Code. “A large portfolio of the problems stem from unfair and inappropriate franchise agreements signed by trusting, uninformed or unwary investors,” he noted.
FAA will approach the Federal Government’s Parliamentary Joint Committee on Corporations and Financial Services with the recommendation. The committee was initiated following state level inquiries in Western Australia and South Australia and controversy over the Bakers Delight franchise.
