ARA slams franchising inquiry

NATIONAL: Peak retail industry body the Australian Retailers Association (ARA) has hit out at the Federal Parliament’s announcement to implement another Inquiry into the Franchising Code of Conduct. ARA executive director and former CEO of the Franchise Council of Australia Richard Evans said he was "bemused" by Government's decision to hold an inquiry only months after passing new legislation after the extensive Matthews Inquiry.

"How many inquiries will it take for uninformed politicians to realise Australia is a world leader when it comes to franchising regulation and practice. Since the introduction of the Franchising Code of Conduct we have been in constant review and perhaps it’s time the sector gained respect from legislators more attuned to a bad story as opposed to the many successes Australian franchising brings," Evans said.

With 52 percent of all franchising systems sitting in the retail market the franchising sector was an important player "already suffering a crisis of confidence with rising interest rates and petrol prices," he said.

"Australia’s $128 billion franchising sector is world’s best practice - with a code of Conduct that is the envy of the franchising world. The Australian model has been adapted by other countries in the development of their legislation. […] why listen to the political posturing of the minority and spend thousands of taxpayers dollars to dissect an industry already punching above its weight?"

"Let this inquiry be the last inquiry for the franchise sector for some time and allow a sense of certainty to develop within the sector. Businesses fail - that is true - but it is not the Franchising Code of Conduct that lets them down. Let all people with any gripes against the franchise sector submit to yet another inquiry and allow this report to consider the strength of the franchise sector," Evans said.