Franchising, Licensing & Distribution

KHQ News & Insights

Food services franchise scorecard – ACCC unimpressed

The Australian Competition and Consumer Commission (ACCC) has revealed the key findings of its recent compliance checks of a sample of franchisors in the food services sector. The ACCC investigated 12 separate food services industry franchisors. The report outlines the following issues. 8/12 of the franchisors made it difficult to contact former franchisees The Franchising … Read more

Report on senate inquiry into franchising sector published

On 14 March 2019, the Parliamentary Joint Committee on Corporations and Financial Services released its report entitled ‘Fairness in Franchising’. The first recommendation of the Report is that an inter-agency Franchising Taskforce be established to examine the feasibility and implementation of a number of the Committee’s recommendations. It is recommended that the Taskforce include representatives … Read more

Ultra Tune fined for breaching Franchising Code

By Iain Irvine (Principal) and Jessica McNamara (Associate) Federal Court gives further direction on required content of annual marketing fund statements The Australian Competition and Consumer Commission’s recent investigations into the conduct of well known motor repairer, Ultra Tune, have resulted in the Federal Court ordering Ultra Tune to pay a penalty of $2,604,000 to … Read more

Franchising – will it remain a viable business model?

This is the text of a presentation given by Peter Buberis to the Council for Economic Development in Adelaide recently. The current atmosphere – media/senate inquiry Why the fuss now?  Confusion with Finance Royal Commission – contract v bad behaviour. Concern from offshore investors.  The franchising industry seems to be in a present state of turmoil … Read more

Franchise systems benefit from competition law changes

Profit opportunities for franchise systems arising from changes to competition laws When your franchise system was established, considerable thought was given to the profit centres it would create and achieving from them a return satisfactory to the system and/or its shareholders, which at the same time provided an acceptable income to your franchisees to justify … Read more

Franchise update: Vulnerable Workers Bill passes

The Fair Work Amendment (Protecting Vulnerable Workers) Bill 2017 passed on 5 September 2017. Despite efforts by the Franchise Council of Australia and others in the franchising industry, the amendments targeted at making franchisors liable for Fair Work Act contraventions by their franchisees were passed largely in their original form. Under the amendments a franchisor … Read more

Proposed Australian workplace law changes affecting franchisors

By Jessica McNamara (Associate) and Iain Irvine (Principal) The 7-Eleven scandal, which involved unlawful conduct by franchisees such as requiring employees to pay back a significant amount of their wages and falsely recording data, sparked a thorough investigation by the Fair Work Ombudsman. Following the release of the Ombudsman’s report, the Australian government announced its … Read more

Franchise Code: ACCC seeks penalties for alleged breach

It is mandatory under the Franchising Code of Conduct for a franchisor to disclose relevant business experience to prospective franchisees, including information about previous insolvency events. For the first time, the Australian Competition and Consumer Commission (ACCC) has sought penalties for breaches of the Code in the Federal Court. The revised Code (which came into … Read more