Franchise complaints drop

The franchising sector has seen a fall in the number of complaints to the Australian Competition and Consumer Commission.

Dr Michael Schaper, acting chair of the ACCC, said "Fewer franchisees have been reporting issues to the ACCC since the introduction of the new Franchising Code in January 2015. 

"After an initial spike averaging 52 franchising complaints in the first six months of 2015, complaints have fallen to 32 a month by the end of 2016."

In the past six months unfair contract term provisions have been extended to small business standard form contracts, and there were 81 complaints on this issue, an the ACCC has taken action against Morild Prty Ltd for alleged breaches of the Franchising Code.