ACCC launches legal action against Retail Food Group over “false, misleading and deceptive conduct”

SmartCompany, December 16, 2020 ACCC chair Rod Sims. Disgraced franchising giant Retail Food Group is facing legal action for allegedly misleading its franchisees when selling them loss-making stores. On Tuesday, the Australian Competition and Consumer Commission (ACCC) commenced proceedings in the Federal Court against Retail Food Group (RFG), which manages and operates Michel’s Patisserie, Brumby’s Bakery, Donut King and Gloria …

Physio franchisor Back in Motion caught with allegedly unfair contract terms

SmartCompany, September 21, 2020 Physiotherapy chain Back in Motion has been forced to amend its franchise agreements after the competition watchdog alleged unfair terms were erecting barriers for partners looking to exit their network. The Australian Competition and Consumer Commission (ACCC) accepted a court-enforceable undertaking from the franchisor on Monday, striking restraint of trade terms that prevented former franchisees from …

Brendan O’Connor: Why Labor wants $10 million penalties for dodgy franchisors

Brendan O’Connor SmartCompany, September 2, 2020 Shadow Minister for Employment, Industry and Small Business Brendan O’Connor. Source: AAP Image/James Ross. The dream of running a small business, often as franchise operation, is an understandable attraction for many Australian families. Too often, however, the reality has seen decent people struggling with failing businesses and facing financial ruin, because they were set …

Morrison government disregards calls for a franchising overhaul, opting for minor changes to regulations instead

SmartCompany, August 21, 2020 The Morrison government has balked at calls for an overhaul of franchising, and will instead pursue minor changes to existing regulations, including tougher penalties for franchisors that break the rules. Seventeen months after a bipartisan parliamentary committee handed down 71 recommendations for reforming Australia’s $180 billion franchising sector, the government tabled its official response on Thursday …

Fair Work Commission awards $13 a week rise in national minimum wage

Fair Work Commission President Iain Ross. Picture Gary Ramage.The Weekend Australian, June 19, 2020 Employers have warned that the Fair Work Commission’s decision not to impose a minimum wage freeze was an “assault on small business” and a “dangerous misstep”, given the risk to jobs as the economy fights to emerge from the COVID-19 crisis. In the first split wage …

Behind the headlines: Why retail, hospitality and franchising businesses are really shutting shop

SmartCompany, February 24, 2020 It seems like every day, we are seeing more and more reports about business challenges and failures — particularly in the retail, hospitality and franchising sectors. Let’s consider the science of cause and effect. What’s being reported is the effect, often resulting in the closure of iconic brands and businesses. And while this brings light to the …

The Franchising Code of Conduct might be under review, but don’t hold your breath

SmartCompany, September 23, 2019 The federal government has now appointed a Franchising Taskforce “to examine the feasibility and implementation of a number of the committee’s recommendations”. So, how is the taskforce going about its task with respect to the dispute resolution recommendations in chapter 15 of the committee’s report? I thought I would adopt an ‘evidence-based’ approach to this question. This …

“Something to hide?”: Franchisors fail ACCC compliance checks

SmartCompany, August 28, 2019 Food franchisors are failing to disclose important information about the costs of running a franchise and are making it difficult for prospective business partners to contact former franchisees, the Australian Competition and Consumer Commission (ACCC) has found. A recent round of compliance checks undertaken by the competition watchdog on a sample of 12 franchisors in the …

Regulation trumps resolution: The franchising taskforce’s initial findings should alarm franchisees and franchisors alike

SmartCompany, August 27, 2019 Both franchisees and franchisors alike will be alarmed and disappointed at the government’s franchising taskforce’s initial approach. Rather than moving to “examine the feasibility and implementation of a number of the committee’s recommendations” made after a lengthy and extensive Senate inquiry into the franchising system, the taskforce has flagged that it seeks to recommend large fines …

“Rebuild it from scratch”: Franchising overhaul considers tougher fines and dedicated ombudsman

SmartCompany, August 26, 2019 The scope of a prospective overhaul of Australia’s $182 billion franchising sector is being hotly debated, following the release of an issues paper late last week which proposed tougher fines and the creation of a dedicated ombudsman. A broad coalition of industry stakeholders met yesterday in Melbourne to discuss an issues paper released by federal government’s …