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ARA: let new franchising inquiry ‘be the last’ peak retail body slams ‘political posturing’

Peak retail industry body the Australian Retailers Association (ARA) has hit out at the Federal Parliament’s announcement to have yet another Inquiry into the Franchising Code of Conduct and demands it ‘be the last.’

ARA Executive Director and former CEO of the Franchise Council of Australia Richard Evans is bemused by the Parliamentary Corporations and Financial Services Committee'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 is an important player already suffering a crisis of confidence with rising interest rates and petrol prices. 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. With extremely low levels of disputes - why listen to the political posturing of the minority and spend thousands of taxpayers dollars to dissect an industry already punching above its weight? 

"Too many politicians this year have used "coward's castle" to make unsubstantiated claims about leading, highly regarded franchise brands in a sector employing over 600,000 Australians and offering them chance to build and own their own business with tried and tested models. 

"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 let's 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. 

For over 104 years, the Australian Retailers Association (ARA) has been the peak industry body in Australia's $292 billion retail sector which employs over 1.2 million people. As an incorporated employer body under the Workplace Relations Act and with a range of member services including business consulting, policy development, advocacy and education, the ARA promotes and protects over 5000 independent and national retailers throughout Australia. Visit www.retail.org.au or call 1300 368 041.

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