Jim Penman says Australia's franchise code of conduct is a failure that protects lawyers, not small businesses. He points to 7-Eleven and recent ACCC concerns as proof. His fix: require franchisors to pay for annual independent surveys of franchisee satisfaction, posted online for everyone to see.
We see small businesses being ripped off again and again and again by unscrupulous operators, and there are some out there, and the government does nothing!
So Jim, the ACCC's Mick Keogh urges transparency in franchise recruitment. What do you say about that? This is based on the 7-Eleven stories that came out recently.
Yeah, I tell you what who's guilty. It's the Ruddie government. These pathetic and absolutely abysmal code of conduct does nothing. It's a feeding frenzy for lawyers. If you're a lawyer, you'll love it. Tens of millions of dollars of useless money being spent to them. That's what's happened to it. What I said right from the beginning, from the first time they had an inquiry, is none of this stuff is going to work. It will not protect franchisees. They will not read these documents. You cannot control what people say. What you should do, you should put an independent polling agency to, at the franchisor's expense, every year do a survey of all franchisees take the results, no cost to the government, no bureaucracy, no lawyers, and then you put it online. And then every franchisee must be directed to that website to have a look at it. You would do so much in one instant, which will cost nothing effectively to the government or the taxpayer or anybody, to protect franchisees. I find it absolutely appalling that this government says, 'We don't give a stuff about franchisees. We care about lawyers, we care about financial advisers, We care about all the bureaucrats, we do not care about the franchisees. They have really failed franchisees. And I see small businesses being ripped off again and again and again by unscrupulous operators, and there are some out there, and the government does nothing!