By Craig Zammit
SYDNEY: The Australian Competition and Consumer Commission (ACCC) has issued a new publication designed to assist prospective franchisees make informed decisions regarding the purchase of a new franchise.
The checklist, provided within the new ACCC publication, is designed as a practical guide addressing requirements covered under the Franchising Code of Conduct, such as disclosure documentation, cooling off periods and potential warning signs.
“The ACCC is maintaining a strong focus on fighting fraudulent behaviour in the marketplace and the franchising sector is an area we are targeting,” said ACCC commissioner, John Martin.
According to the ACCC, buying into a franchise carries significant risks, and Martin believes that potential franchisees should have as much information available to them as possible.
“The main message the ACCC aims to promote is that for people who are choosing to join a franchise business to be diligent and make informed decisions before signing on the dotted line.
“Buying into a franchise generally involves large sums of money and potentially lifetimes of savings, so it makes sense that prospective franchisees have as much information about the business and seek professional advice before making their investment,” he said.
Any persons interested in obtaining the document can call the ACCC Small Business Helpline on 1300 302 021 or download it from www.accc.gov.au