Recreation Management Software for managing all your program registrations, facility bookings, membership pass sales and Point of Sale; including detailed reporting, automated customer communication…read more
Senate report says Australian franchising activities requires drastic overhaul
A report from the Australian Senate has called for a radical overhaul of the entire franchise sector, recommending civil law penalties be included in a stronger industry code along with greater enforcement power for the Australian Competition and Consumer Commission to help eradicate "exploitative behaviour".
Released this week, the damning Senate committee report has called for better disclosure, particularly around financial performance when franchises are sold, and it has demanded greater accountability about how compulsory marketing levies are spent.
With an estimated annual value of over $135 billion, Australia now more than 1250 franchise systems, and with more franchising outlets per capita than the USA, is now known as the ‘franchising capital of the world’.
Having grown from food and family restaurants, franchising has grown to include practically every type of product and service imaginable, with home-grown concepts accounting for around 90% of the franchise market.
With franchising common in many leisure industry sectors - notably fitness clubs and swimming pool equipment supply - the committee’s call for the Federal Government to establish a taskforce to oversee and implement its recommendations is likely to have some impact.
However, it was the Retail Food Group - which owns the Michel's Patisserie, Gloria Jeans, Brumby's Bakery, Donut King and Crust Pizza franchises – that was subject to the most criticism, with a whole chapter of the 369 page document focusing on its activities and one of the report’s recommendations being for an inter-group investigation by the competition regulator, the Australian Taxation Office and the Australian Securities and Investments Commission into the franchisor’s operations and dealings.
The report cited concerns over issues such as tax avoidance, compliance with company director duties and the Franchising Code of Conduct, Australian Consumer Law, and insider trading.
The report also suggested a new group should be charged to take the committee’s recommendations to the next stage, advising “the committee recommends that the Australian Government establish an inter-agency Franchising Taskforce to examine the feasibility and implementation of a number of the committee’s recommendations.
“The Franchising Taskforce should include representatives from the Department of the Treasury, the Department of Jobs and Small Business and, where appropriate, the ACCC.”
The Franchise Council of Australia welcomed the report, telling its members “two key initiatives that the FCA is supporting is the establishment of a registry of all franchises in Australia, and the mandatory requirements to obtain legal and financial advice prior to entering a franchise agreement.”
According to the Franchise Business website, owning a franchise is “the second great Australian Dream”.
Images: F45 has beein one of Australia's most succesful fitness franchises of recent years (middle) and Jump! Swim School was criticised by a number of dissatisfied franchisees earlier this year (below).
9th January 2019 - Jump! Swim School responds to media reports of dissatisfied franchisees
8th January 2019 - Investor named Chairman of expanding Fitstop Australia
13th November 2018 - HIIT Factory plans 15 new franchised studios
8th November 2018 - F45 launches new model for youth and over sixties
12th September 2018 - KX Pilates’ opens 50th franchise and first international studio
25th June 2018 - CORE+ launches first franchised studios in Melbourne
18th December 2017 - Collective Wellness Group adds Xtend Barre to its brand stable
14th December 2017 - Vision Personal Training appoints new Personal Training Operations Manager
23rd October 2017 - World Gym franchise opens in Maroochydore
21st July 2017 - KX Pilates makes a stand on sham contracting
22nd December 2016 - Crunch Fitness partners with Cristiano Ronaldo to launch CR7 gyms
Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?
The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.
However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.
Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.
Subscriptions cost just $90 a year.
Click here to subscribe.
The Complete Guide to Leisure Industry Products & Services.
Anti Wave International is the original suppliers of top performance swim, aquatic sports, leisure and pool programming equipment. Founded in 1971, Anti Wave International is proud of its…read more
As of the 1st July 2018, Enta Australasia Pty Ltd/Best Union has been rebranded as VIVATICKET Pty Ltd. Click here to view the VIVATICKET Pty Ltd listing. 19th July 2018 - ENTA…read more
Smart Connection Consultancy is a boutique sport and recreation consultancy who has become one of Australia’s leading advocates for the use of synthetic sports surfaces as a vehicle to grow…read more
SICO is at the forefront in innovative mobile folding and rolling, space efficient tables, stages, dance floors and many other products which help our customers optimise their use of space. Image…read more
Links Modular Solutions are a leading provider of high-quality, innovative software solutions for leisure facilities. Our software suite includes modules such as POS, Classes, Members, Facility…read more
Life Fitness Cardio Life Fitness Strength Hammer Strength Group Cycling Rowers Certified Refurbished Freeweights Benches & Racks Flooring Life Fitness is the global leader in the fitness…read more
get listed with our suppliers directory
Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!