Major Franchise Brands Accused

Sydney Morning Herald:

Some of the biggest brands in franchising are being accused of fraud, collusion, and unconscionable conduct against their franchisees.

More than 30 disgruntled former franchisees from Bakers Delight, Lenard’s Chicken, Midas, Michel’s Patisserie, Hungry Jacks and Howard’s Storage World have joined forces to take on the franchise chains.

After 2 years of lobbying for support from industry groups and politicians on both sides of politics, the most vocal of the franchise owners, Deanne de Leeuw, was told by the Australian Competition and Consumer Commission last week that the watchdog is close to bringing an action against Bakers Delight under the Trade Practices Act on her behalf.

‘I was told that my complaints had been examined by the ACCC’s enforcement committee, and that their senior investigation team had been told to move the top 6 cases - of which mine is one - to the very last stage of investigation.

‘I was told that the cases with strong enough evidence will be taken to court,’ said Ms de Leeuw, a former Bakers Delight franchisee who has spent the last 2 years fighting in her own right in the Industrial Relations Commission.

The ACCC will not comment on any investigation that is ongoing.

Read more.