New franchisee body up and running

Disgruntled franchisees have come good on a promise to establish a new franchisee body, launching a new website in a bid to lobby the Government, regulators and the Franchisee Council of Australia for better treatment.

The fledgling body, flagged last month in SmartCompany, is called the National Franchisee Coalition. The organisers want franchisees to contact their website, to form a database and use this to pressure the Government and regulators on improving their rights.

The website was set up this week by more than dozen individuals, although Liberal MP Joanna Gash – a long-time agitator for franchisee rights – is not directly involved. One member says it has already been contacted by a number of franchisees.

The group is primarily concerned about making the franchising code of conduct a state law in Western Australia, Queensland, New South Wales and South Australia. This would attach financial penalties on some breaches of the code. It has also raised concerns about the Franchise Council of Australia, which represents both franchisees and franchisors.

There has been some movement on small business recently, with Small Business Minister Nick Sherry last month floating the idea of a small business “ombudsman” to deal with cases before they go to court.

The FCA could not be contacted before publication.