The Franchise Council of Australia’s FY23-24 annual report, which caused consternation among members prior to the AGM, was accepted at the meeting, despite 32 proxy votes opposing it.
Thirty nine members voted to accept the report which showed an eye-watering $1,351, 040 loss including $900,000 due to employment costs. There was one abstention.
Of the 427 FCA members, just eight attended the AGM in person, with a further 31 attending online. About 15 people attended online as observers.
There had been a delay to the release of the audit report which had heightened tensions among members.
“The circumstances for that delay were outside the FCA’s control. The auditor had advised that he needed more time to conclude his audit,” FCA chair Richard Thame told Franchise Executives.
The audit report was sent to members seven days before the AGM, on the date it was signed.
At the AGM, Thame confirmed the FCA has sufficient cash reserves to meet its obligations.
“We are returning to a profitable position, we expect to be in at least a break even position by June 2025,” he said.
