Federal Small Business Minister Fran Bailey has reportedly promised, if re-elected on Saturday, to amend the Trade Practices Act to prevent bullying tactics in franchising.
Her comments, reported in the West Australian newspaper, follow the dispute between Jack Cowin’s Competitive Foods, which operates 45 KFC franchises in WA, and Yum Restaurants International, which owns the KFC brand.
Yum is refusing to renew the long-term franchise licenses held by Competitive Foods in Western Australia. The first to close was the Rockingham, Perth, store. It closed its doors on the weekend for the last time. The next franchise agreement is due for renewal late 2008. Yum has offered to buy the Competitive Foods’ KFC operations.
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