The consumer watchdog is urging would-be franchise buyers to watch out for inflated franchise-income claims. The warning follows complaints to the Australian Competition and Consumer Commission from franchise owners who say they were promised a minimum “guaranteed” income from their franchise but had earned little or nothing. Many complaints involved cleaning and home services.
”The ACCC is investigating whether a number of franchisors in this industry engaged in misleading or deceptive conduct by making claims about potential earnings,” acting ACCC chairman Michael Schaper said, adding the watchdog was particularly worried about franchisors targeting people from non-English speaking backgrounds.
While most franchisors are honest, a growing number seem to be making untenable promises, Dr Schaper said. Read more.