Labour wants extra penalties, up to $10 million, for dodgy franchisors, as outlined in an article in Smart Company by Shadow Minister for Employment, Industry and Small Business Brendan O’Connor, who was a committee member for the parliamentary inquiry into franchising.
He suggests the reality of franchising has seen “decent people struggling with failing businesses and facing financial ruin, because they were set up to fail.”
As someone who has worked in the franchise sector for nearly two decades, I couldn’t agree more.
And while no one wants to see any franchisee fail, I do agree that yes, some franchisors have played a very big part in this.
Yet franchisees need to take greater responsibility too.