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ARA applauds Ketchell High Court decision - Relief for retail franchise sector as appeal allowed

Peak retail industry body the Australian Retailers Association (ARA) applauds the High Court of Australia’s decision today in the Master Education Services Pty Limited v Ketchell case as it will help stabilise the uncertainty currently prevailing the franchise sector.

ARA Executive Director Richard Evans said allowing the appeal will re-assure a sector besieged by unnecessary inquiries only months after passing new legislation following the extensive Matthews Inquiry "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 several state government inquiries held this year and another federal inquiry currently calling for submissions. In this current challenging economic climate, retailers just want more certainty," Evans said. "How many inquiries will it take for the uninformed to realise Australia is a world leader when it comes to franchising regulation and practice? Since the introduction of the Franchising Code of Conduct, the sector has 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.

"The Australian retail franchise sector is world's best practice and is under attack by people who misunderstand the business model that is franchising. This was aptly displayed in the initial NSW Court of Appeal decision that found a breach of clause 11 of the Franchise Code rendered illegal a franchise agreement entered into.

"Australia's $128 billion franchising sector is world's best practice and the Australian Code has been adapted by other countries in the development of their legislation. Many of our retail franchises are now exporting their franchises around the world with several iconic retail brands leading the way. "So we say, enough is enough and perhaps it is time for the uninformed to get out of the retail franchise sector's pockets and out of their way," 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.


For interview opportunities with ARA Executive Director Richard Evans contact: Kath Christie, ARA Policy & Media T: 0422 293 544 E: kath.christie@retail.org.au

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