ACCC deputy chair Mick Keogh. Source: Supplied.
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The competition regulator has warned franchisors of their legal obligations when dealing with franchisees wanting to exit an agreement now that reforms to the $180 billion sector have come into effect.
Speaking at the Franchise Council of Australia Legal Symposium yesterday, Australian Competition and Consumer Commission (ACCC) deputy chair Mick Keogh acknowledged the challenges facing franchisees over the past 18 months.
“We expect franchisors to clearly communicate and continuously consult with franchisees on any changes they propose to make,” Keogh said.
Keogh said where there is no longer any benefit for franchisees to stay in an agreement, they may want to exit early.
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Lois Maskiell is a former journalist at SmartCompany, passionate about business and startups. Lois has a master's in journalism from Monash University.
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