Homicidal McTurkey spotted in AUS

“Let’s not let turkeys kill the goose that laid the golden eggs.”

An interesting quote from John O’Brien, Chairman of the Franchise Council of Australia, NFC in a Smart Company article called: Franchise Council hits back at critics.

It seems Australia’s democratic process (ie. citizens speaking to politicians, members’ raising constituents’ concerns within parliament, Hansard records, governments asking House/Senate committees to look into areas of potential legislation, Joint Committees asking for citizens to contribute, yaddayaddayadda) has AUS franchise industry’s self-proclaimed “peak body”, a little miffed:

The Franchise Council of Australia has urged members to “push back” against claims of franchisor abuse aired in Federal Parliament last week.

A number of MPs, including NSW member Joanna Gash, told Parliament last week of allegations of churning, bullying and intimidation by franchisors. On top of this, a Federal Parliamentary inquiry into franchising was flooded by submissions from disgruntled franchisees.

It appears that Mr. O’Brien is sensitive to any lack of confidence in Australia’s franchise industry:

“If you are as annoyed as I am at these continuing smears against franchising, I urge you to email or write to the committee handling the inquiry right away,” he writes.

“Let’s not let turkeys kill the goose that laid the golden eggs.”

It was unclear to me who Mr. O’Brien was calling a turkey (bird brain?). Each or all of the following:

  1. Mrs. Joanna Gash MP, (duly elected in 1996 then re-elected in 1998, 2001, 2004 and 2007 by the fine people of the Electoral Division, Gilmore NSW),
  2. the other 7 MPs who have joined her in demanding immediate parliamentary action to curb franchisor opportunism (see Franchising at a crossroads),
  3. the Parliamentary Joint Committee on Corporations and Financial Services or
  4. the clearly diabolically obsessed mastermind, the thuggish: Deanne de Leeuw.

In any case, Big Franchising is always more than willing to “hit back” to get their way.

  • As any good fascist knows, democracy is the last refuge for losers.
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One Response to Homicidal McTurkey spotted in AUS

  1. Carol Cross says:

    Of course, the FRANCHISORS and the special interests, who support the status quo of franchising and the law, will push the franchisors to combat any bad press that might mean changes in the status quo that protects franchisors and the special interests involved with franchising.

    Government, of course, is one of those “special interests” because they depend on the revenue in terms of taxes, etc.. that is produced by lively commerce in the franchising sector. Government doesn’t want to do anything that will in any way depress commerce. Government can rationalize that it serves the “greater good” if only 60% of first-owners of franchises thrive because this 60% is vital and essential to the economy. Government can rationalize that the 40% who fail and lose everything cannot be allowed to take down the 60% who fail by being able to prove “fraudulent inducement to contract” or “fraudulent concealment of material information” in the courts.

    I am afraid that there will not be any HONEST talk in government circles about franchising and why franchisors are not required under the Commercial CODE to disclose unit performance statistics in their possession to new buyers of their franchises at the time of sale. Any regulation short of disclosure of unit performance statistics will just be more of the same.

    Apparently, however, such mandated disclosure would reveal low profitability and actual failure in many franchise systems and the franchisors all cooperate to NOT disclose unit performance statistics because this serves their best interests and protects them in the courts. If they make no representations in the boilerplate contracts and the boilerplate contracts contain legal language that protects them in the courts against their great hype and “hard sell” of their franchise OUTSIDE of the contract, why would they want to disclose unit performance statistics to new buyers if the numbers didn’t look that good and would turn off the new buyers?

    It will be interesting to continue to look at “representative government” down under and see whether there will be any justrice for franchisees or just the appearance that their interests are protected.

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