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Franchising Council chief responds to survey highlighting mistrust in industry

Written on the 23 April 2010 by SmartCompany

Franchising Council of Australia chief executive Steve Wright has defended the franchising sector, saying it is a viable alternative to normal small business development, in a response to a survey highlighting distrust within the industry.

The survey, undertaken by the Griffith University's Asia-Pacific Centre for Franchising Excellence and the ACCC, found that 28% of franchisees disagreed with the statement that their franchisor could be counted on to be honest in business dealings.

Additionally, the survey also found that 30% could not rely on franchisors to keep promises, with 30% also saying they could not trust their franchisee to do "what is right".

Wright says the finding was a surprise, and highlights the need for due diligence before entering a franchise system, but also says the results could have been skewed due to the nature of the industry.

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Author: SmartCompany

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