Franchisors often lean very heavily on whom they perceive as disloyal (ie. capable of independent thought).
MOBILE phone retailer Allphones unfairly discriminated against some of its franchisees when it introduced a “no dickheads” policy in April 2004 to weed out underperforming businesses, the competition watchdog has claimed in the Federal Court.
The ACCC in Australia helps out by scolding Allphones by cutting a deal for, on average, $55,000 per franchisee.
“The company have basically forgone 12 months of profits, not their wages. How is that a punishment? The compensation will never be enough to cover the stress and the emotional roller-coaster that I and other franchisees went through.
“It was a terrible period of our life and many franchisees lost homes and marriages because of the stress during that time,” said one franchisee who wished to remain anonymous.
Just a cost of doing business.