As yet another national franchise bites the dust, those at the coalface are angry the Federal Government appears to be doing nothing to usher in much-hyped reforms to the $128-billion-a-year industry.
The recent collapse of kitchen and laundry appliance franchise Kleenmaid is likely to cost consumers $27 million in lost deposits, as well as many of its 150 staff their jobs. About 2800 trade creditors are owed $12 million.
The company has four WA stores among 20 nationwide.
It adds to a tale of woe for the sector, with once-household names such as Midas, Kleins, Ezy DVD and Strathfield all going into administration in recent months.
Franchisees are among those left out-of-pocket by the collapse of their parent companies, and many are irate the Federal Government has yet to move on a joint parliamentary committee’s recommendations for reform of the franchising code of conduct.
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