The report highlighted several key areas where greater transparency and compliance is needed across many franchised industries:
It was also found that over 40% of franchisees are not seeking independent professional advice from a lawyer, accountant or business advisor before entering a franchise agreement. This shows that franchisees are placing a high level of trust and reliance on the information disclosed by their franchisor, meaning a greater need for that information to be comprehensive and accurate.
Luke is an Associate with Stone Group Lawyers and is a regular contributor to online and print media for Inside Franchise Business. Luke is also a member of the Queensland Law Society Franchise Law Committee.