‘Surrender Your Rights – Or Else’

WA today:

Mums and Dads looking to get into business are being asked to sign “gag” contracts that amount to standover tactics, it has been claimed in federal parliament.

Liberal MP Joanna Gash claimed on Tuesday night that the “deed of surrender and release” prevented prospective franchisees from suing franchisors for damages, or commenting in any way on any aspect of the contract.

Ms Gash, who did not name the franchisor involved, said the deed did not stop the franchisor from engaging in predatory behaviour or from exploiting their position.

“This constitutes an effective gag on the franchisee… I suspect that having such an instrument in place delivers the franchisor even more protection from legal remedy,” she said. Read on.

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