The Franchise Shop franchise advisors support demands for a Retail Leasing Code of Conduct

Franchise advisors at The Franchise Shop have stated that recent comments from the Franchise Council of Australia calling for the introduction of a voluntary Code of Conduct to manage the process of rental reviews do not go far enough in attempting to correct the imbalances inherent in the current system.

Senior Consultant for the franchise advisors, Grant Garraway, notes that “the Federal Government first considered this back in 1997 in the same enquiry which led to the Franchise Code of Conduct’s introduction in 1998.”

“A Senate Committee held public enquiries at the time which clearly established the need for a Retail Leasing Code of Conduct. The landlords opposed a Retail Leasing Code. Nothing was done at the time or since,” he says.

The FCA’s call for a voluntary code, Mr Garraway adds, is not sufficient to counter the current imbalance of power between franchise owners and their landlords.

Only a compulsory code, backed by strong investigative powers and funding for ACCC prosecutions will help to correct this balance, he says.

The Franchise Shop notes that the Australian Retailers Association supports action to remedy the imbalance of power between landlords and their tenants.

In addition, the Productivity Commission has also suggested a Code should be introduced.