Franchisers and franchisees will soon all have a code and an ombud
PLANS are afoot to set up an ombud to handle complaints between franchisers and franchisees, following the release in January of the draft Franchise Industry Code of Conduct by the National Consumer Protector.At present only members of the Franchise Association of SA (Fasa) are governed by a code of conduct. With the new code, the National Consumer Protector plans to widen this to include all franchise systems through the appointment of an industry ombud for a five-year term.To fund the ombud’s office, a levy on franchisees and franchisers has been proposed. Aggrieved parties will be able to seek legal redress should they feel the need to.Eugene Honey, a partner at law firm Adams and Adams, describes the code as "very much a work in progress" and says minor amendments to it were made following the comments period.He says an updated version of the code has been lodged with the National Consumer Commission. Should the commission give the green light, it will then be sent to Trade and ...
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