A BATTLE between Bakers Delight and a former franchisee has resulted in a national inquiry into franchising.
The inquiry will be conducted by the Parliamentary Joint Standing Committee on Corporations and Financial Services.
Deanne de Leeuw from Nowra owned three Bakers Delight franchises in the area and after uncovering a major staff underpayment issue ended up in a lengthy, expensive and emotionally draining battle to have the system changed to protect franchisees.
Ms de Leeuw has been calling for a federal inquiry into franchising since last year.
Two State inquiries have since been completed, but the Federal Government, until now had shown no inclination to address their recommendations.
“Now the Parliamentary Joint Standing Committee on Corporations and Financial Services is to inquire and report on the operation of the Franchising Code of Conduct, and to identify, where justified, improvements to the code that can be made,” Ms de Leeuw said.
“This is a fantastic opportunity to get the real stories of franchisor opportunism into the public arena.
“Franchisors and their lobby groups will continue their efforts to convince the government that nothing is wrong in franchising.
“It is essential that the real picture is presented to the government, as I believe this will be the last opportunity for many years,” she said.
“I am asking that all current franchisees who are concerned about their lack of protection, and former franchisees who have been the victims of opportunistic franchisors, make a submission stating their concerns and experiences.
“There are thousands of people who have been done over by franchises in Australia,” Ms de Leeuw claimed.
“I think this is the last chance for a
few years to make changes and increase protection.
“We really need a concerted effort, every single submission counts in this type of inquiry.
“Even if one person from one franchise system that we haven’t heard from before makes a submission, at least that puts that franchise on the radar.
“I know that a lot of people do go through franchisor abuse and don’t want to speak about it,” she said.
“I understand people don’t want to drag it up again, especially if there has been emotional loss as well as financial loss.
“But it’s for current and future franchisees.
“It’s a battle to get better protection because the current regulation doesn’t protect franchisees once they have signed a contract. “
Ms de Leeuw hopes the government sets up a tribunal, like in the real estate industry where it’s cheap and easy to gain mediation.