You spend thousands of dollars on a franchise, only to discover your franchisor is about to sell the same products or services online. How would you feel? Worried no doubt.
What do you think about franchisors going online?
It’s an issue the sector is grappling with, as franchisors seek to move with the times without stepping on their franchisees’ interests.
”Franchising’s a classic one because over time the idea of a geographical territory could become superfluous,” said the deputy chairman of the Australian Competition and Consumer Commission, Dr Michael Schaper. ”What happens when you’ve got a commodity you need to physically distribute but you don’t need a face-to-face presenceâ€¦ what happens to the franchisees?
”Even if you sign up today and everything’s OK, in five years’ time the retail sector may be so different that it may not be worth being in that franchise system.” Read more.