The findings and recommendations from an extensive Parliamentary inquiry into the franchising sector have been released.

BCCM used a submission and appearance at a public hearing to highlight the clear differences between member-owned co-ops and investor-led franchise systems operating in similar markets.

Many well-known retail brands are owned by co-ops of independent businesses: Tyrepower, Bottler (ILG), Best Western, Carpet One and RapidClean are just a few examples. 

It is important that policymakers recognise these co-ops operate differently as they develop policy recommendations targeting problems in investor-led businesses.

It is pleasing to see the implicit validation of the co-op structure and principles in a number of the inquiry recommendations on how to balance the power of franchisees and franchisors:

  • investigate the merits of requiring franchisee representation on franchisor boards;
  • require majority agreement by franchisees for contract amendments by franchisors; and
  • provide more education and information for franchisees.

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