The Coalition parties may be the natural allies of the small businesses that make up the franchising industry, but Labor’s small business spokesman Craig Emerson is campaigning hard in the franchising community.
One influential opinion maker in the franchise community described him as ‘impressive’ following the National Franchise Convention held in Melbourne earlier this month.
2 days ago, Emerson released his franchising policy.
The Labor party, if elected, would amend the Franchise Code to include good faith obligations – as long as the scope of the obligation is well defined – according to a policy document released by Emerson on 24 October.
In contrast, earlier this year the Howard Government rejected the recommendation of the Matthews Committee into franchising disclosure for such a provision to be added to the code, which is mandatory under the Trade Practices Act.
In its response the Matthews Committee, the Government pointed out that section 51AC of the TPA includes good faith as a factor in determining whether there has been unconscionable conduct.
Labor has endorsed the other changes proposed to the Franchising Code by the Howard Government. These include a requirement to keep the prospective franchisee better informed before signing up, and afterwards about supplier rebates, marketing funds, previous franchisees, and financial information of consolidated groups.
What Would Franchising Be Like Under Labor?
November 2, 2007 by Cris | 0 Comments
In Basic Guidelines, Law & Agreements, Franchisees, Franchises, Franchisors, News
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