Franchising is not broken but it needs tweaking.
That’s according to MST lawyer Alicia Hill who was one of four panellists to address the question of what next for franchising, post-inquiry.
All the panellists (Mary Aldred, CEO of the Franchise Council of Australia, Jason Gehrke of the Franchise Advisory Centre, and Darryn McAuliffe, FranData), had shared insights into the sector as part of the parliamentary inquiry.
The panel agreed that the franchise sector needs to take action to self-regulate. Franchisors could make changes now to improve their processes. For instance:
- Make it mandatory for franchise buyers to seek legal and financial advice
- Insist franchisees produce business plans – and check to see if these plans are realistic
- Manage franchisees’ performance against their business plans
- Check out the ACCC recommendations following the inquiry
Jason Gehrke said “Life goes on and franchising is resilient.” But he advised franchisors to sharpen up. “Do what you’re doing, but do it better,” he said.
The inquiry findings are due 6 December 2018.
When can we expect to see changes? It’s too hard to call. While the parliamentary process may be slowed by a federal election, putting the brakes on any regulatory changes until the second half of 2019, the fast implementation of the Vulnerable Workers Act shows that new laws can be swiftly legislated.
The panel discussion was part of the FCA Queensland chapter’s festive event, held on Thursday 22 December.