Rudd Government Ignores Franchise Industry

Kleenmaid franchisors have been let down by the Rudd Labor Government’s inaction on a report tabled in Parliament more than four months ago, according to Queensland senator Sue Boyce.

Senator Boyce was a member of the Parliamentary Joint Committee on Corporations and Financial Services Inquiry into the Franchising Code of Conduct.

“The report into the Franchising Code of Conduct was presented to Parliament on December 1 last year. The Small Business Minister, Craig Emerson has said he will look at the recommendations in May,” Senator Sue Boyce said today.

“If the Minister had not taken such a lackadaisical approach to the report, Kleenmaid franchisees might be in a better position today.

“The recent collapse of Kleenmaid Pty Ltd demonstrates the fragility of franchise agreements in the current economic downturn. Fifteen franchisee-run outlets and a further 30 franchisees providing in-home services have been placed into jeopardy.

“Franchisors must be required to show their financial viability to franchisees during the agreement-making process and a requirement to bargain in good faith would encourage and enforce such disclosure.

“If the Government was serious about the viability of the franchise industry, it would finally implement the recommendations of the Committee,” Senator Boyce said.