ACCC tells franchise sector to improve its image. Pic: theemarketingpro.com
Franchising must smarten up its image, that's according to the chairman of the Australian Competition and Consumer Commission Rod Sims who was a keynote speaker at the Franchise Council of Australia's national conference today.
In his speech, Rod Sims warned the industry, "The franchising sector is an important part of the Australian economy, but one that must improve its image to continue to grow."
But the message from the FCA is that franchising is healthy, strong and profitable, with profit the number one focus for the 70,000 franchisees who have invested in a sector that continues to attract new business.
Introducing the keynote speaker, the FCA's chairman Stephen Giles reminded delegates of the recent PwC report that showed the franchise sector had set, and met, ambitious growth plans and profit goals.
However Sims said the ACCC will be doing more to ensure compliance, helping the sector to improve its profile.
"Franchising offers many oppportunities to entrepreneurs, young and old, but also many obstacles. The power imbalance in the franchise relationships too often leads to conflict, which is why the ACCC polices the franchising code of conduct."
Dr Michael Schaper, ACCC deputy chairman highlighted to the delegates ways the ACCC can best utilise its powers.
How the ACCC can help
The Competition and Consumer Act allows the ACCC to
- monitor compliance
- seek the disclosure of documents that franchisors must provide under the Code of Conduct
- investigate alleged breaches
"By ensuring that franchisees are aware of their rights and can access dispute resolution services, the ACCC is playing its part to ensure the franchising sector in Australia strengthens its standing and continues to grow," said Schaper.
