Franchise enquiries to the Australian Competition and Consumer Commission have increased in the last six months.
The introduction of the new Franchising Code on 1 January 2015 has resulted in a 63 percent boost in enquiries to the commission. And over the six month period, and in line with its enforcement priorities for this year, the ACCC has served audit notices to 12 franchisors to check their Code compliance.
The information was revealed when deputy chair of the ACCC, Dr Michael Schaper, launched the 10th issue of the Small Business in Focus report at the Council of Small Business Australia national summit in Sydney.
“Misleading conduct and false representations remain the most frequently complained about area for small businesses, with over 1300 complaints received in the January to June 2015 period,” said Dr Schaper.
More than 12,000 users accessed free online educational programs for potential franchisees, small businesses and tertiary students.
“Time poor small business operators need educational resources that are practical, user-friendly and fit around their busy schedules. The positive response to our online programs demonstrates that they are meeting this need,” he added.