The Inconvenient Truth About Rogue Franchisors

Advocates of state-based franchise regulation argue that current and potential franchisees must be protected from the rogue franchisors whose predatory behaviour is so bad that further legislation in addition to the Franchising Code of Conduct is required.

While acknowledging that good franchisors exist, the advocates of state-based legislation for franchising in both South Australia and Western Australia insist that the rogues are responsible for the systemic abuse of franchisees around the country.

According to these advocates, this systemic abuse includes a range of behaviours designed to fleece franchisees of their wealth and well-being.

But there is an inconvenient truth behind this rhetoric and the claims of widespread and systemic abuse of franchisees: There are no reliable statistics to back-up these claims. Full article.

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